Fintech, Small Business & the American Dream
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21. Peter Renton, “Funding Circle Raises $37 Million and Launches in The U.S.,” Lend Academy , October 23, 2013, https://www.lendacademy.com/funding-circle-raises-37-million-and-launches-in-the-u-s/ .
22. Allen Taylor, “Will Amazon Lending Disrupt, Displace, or Prop Up Banks?” Lending Times , January 4, 2018, https://lending-times.com/2018/01/04/will-amazon-lending-disrupt-displace-or-prop-up-banks/ .
23. Jeffrey Dastin, “Amazon Lent $1 Billion to Merchants to Boost Sales on Its Marketplace,” Reuters , June 8, 2017, https://www.reuters.com/article/us-amazon-com-loans-idUSKBN18Z0DY .
24. Amy Feldman, “PayPal’s Small-Business Lending Tops $3B As Company Launches New Tools For Small-Business Owners,” Forbes , May 1, 2017, https://www.forbes.com/sites/amyfeldman/2017/05/01/paypals-small-business-lending-tops-3b-as-company-launches-new-tools-for-small-business-owners/#7a8014b34018 .
25. Leena Rao, “Square Capital Has Loaned Over $1 Billion to Small Businesses,” Fortune , November 7, 2016, http://fortune.com/2016/11/07/square-capital-1-billion/ .
26. “Q2 2018 Shareholder Letter,” Square , p. 7, https://s21.q4cdn.com/114365585/files/doc_financials/2018/2018-Q2-Shareholder-Letter-%E2%80%94-Square.pdf .
27. Note: As described in Chapter 2 , small supply chain firms account for almost 1 million small businesses and about 10 million jobs, with high average wages and significant amounts of innovation.
28. Note: In April 2018, Orchard was acquired by Kabbage , helping Kabbage gain access to Orchard’s data science technology, https://www.kabbage.com/pdfs/pressreleases/Kabbage_Acquire_Orchard.pdf .
29. Author’s analysis and data from “Breaking New Ground: The Americas Alternative Finance Benchmarking Report,” Cambridge Centre for Alternative Finance , 2016, https://www.jbs.cam.ac.uk/fileadmin/user_upload/research/centres/alternative-finance/downloads/2016-americas-alternative-finance-benchmarking-report.pdf .
30. “Global Marketplace Lending: Disruptive Innovation in Financials,” Morgan Stanley , May 19, 2015, https://bebeez.it/wp-content/blogs.dir/5825/files/2015/06/GlobalMarketplaceLending.pdf .
31. “Fintech Investment in U.S. Nearly Tripled in 2014, According to Report by Accenture and Partnership Fund for New York City,” Accenture , June 25, 2015, https://newsroom.accenture.com/news/fintech-investment-in-us-nearly-tripled-in-2014-according-to-report-by-accenture-and-partnership-fund-for-new-york-city.htm .
32. Geoffrey A. Moore, Crossing the Chasm: Marketing and Selling Disruptive Products to Mainstream Customers (HarperBusiness Essentials, 2002), 9, http://library.globalchalet.net/Authors/Startup%20Collection/%5BMoore,%202002%5D%20Crossing%20the%20Chasm,%20Revised%20Edition.pdf .
33. Geoffrey A. Moore, Inside the Tornado: Strategies for Developing, Leveraging, and Surviving Hypergrowth Markets (HarperCollins Publishers, 2009), 26, https://docslide.us/documents/inside-the-tornado-geoffrey-a-moore.html .
34. Securities and Exchange Commission, Form 10-K: OnDeck Capital Inc., 2015, http://d1lge852tjjqow.cloudfront.net/CIK-0001420811/2e36150d-a925-4b94-ad17-1d111b90ba94.pdf ; “Lending Club Reports Fourth Quarter and Full Year 2015 Results and Announces $150 Million Share Buyback,” PRNewswire , February 11, 2016, http://www.prnewswire.com/news-releases/lending-club-reports-fourth-quarter-and-full-year-2015-results-and-announces-150-million-share-buyback-300218747.html .
35. Chris Myers, “For Alternative Lenders to Be Successful, Differentiation Is Key,” Forbes , October 2015, http://www.forbes.com/sites/chrismyers/2015/10/15/for-alternative-lenders-to-be-successful-differentiation-is-key/#722f3110207e .
36. Karen Gordon Mills, Dennis Campbell, and Aaron Mukerjee, “Eastern Bank: Innovating Through Eastern Labs,” HBS No. 9-318-068 (Boston: Harvard Business School Publishing, 2017), https://www.hbs.edu/faculty/Pages/item.aspx?num=53399 .
Chapter 8
1. Interview with Shivani Siroya of Tala, June 19, 2018.
2. Emma Dunkley, “UK Banks Prepare to Share Customer Data in Radical Shake-up,” Financial Times , November 26, 2017, https://www.ft.com/content/55f4503e-cb95-11e7-ab18-7a9fb7d6163e .
3. Bernard Marr, “28 Best Quotes About Artificial Intelligence,” Forbes , July 25, 2017, https://www.forbes.com/sites/bernardmarr/2017/07/25/28-best-quotes-about-artificial-intelligence/#7f333fbc4a6f .
4. “This Hot Robot Says She Wants to Destroy Humans,” CNBC , March 16, 2016, https://www.cnbc.com/video/2016/03/16/this-hot-robot-says-she-wants-to-destroy-humans.html .
5. Bernard Marr, “28 Best Quotes About Artificial Intelligence,” Forbes , July 25, 2017, https://www.forbes.com/sites/bernardmarr/2017/07/25/28-best-quotes-about-artificial-intelligence/#7f333fbc4a6f .
6. Iain M. Cockburn, Rebecca Henderson, and Scott Stern, “The Impact of Artificial Intelligence on Innovation: An Exploratory Analysis,” Chapter in forthcoming NBER Book The Economics of Artificial Intelligence: An Agenda, December 16, 2017, http://www.nber.org/chapters/c14006.pdf .
7. Zvi Griliches, “Hybrid Corn: An Exploration in the Economics of Technological Change,” Econometrica 25, no. 4 (1957): 501–522.
8. “Small Business Development Center,” U.S. Small Business Administration, Local Assistance , https://www.sba.gov/tools/local-assistance/sbdc .
9. “SCORE Business Mentor,” U.S. Small Business Administration, Local Assistance , https://www.sba.gov/tools/local-assistance/score .
10. “Community Development Financial Institutions Fund,” U.S. Department of the Treasury , https://www.cdfifund.gov/Pages/default.aspx .
11. “Chase Initiative Sparks Debate Over ‘Bank Deserts’ And SMBs,” PYMNTS , August 21, 2018, https://www.pymnts.com/news/b2b-payments/2018/jpmorgan-chase-small-business-advisory-banking-branches/ .
12. Suman Bhattacharyya, “Chase to Reach Business Owners Through ‘Business Advice Center on Wheels’,” Tearsheet , June 15, 2018, https://www.tearsheet.co/marketing/chase-to-reach-business-owners-through-business-advice-center-on-wheels?utm_source=digiday.com&utm_medium=referral&utm_campaign=digidaydis&utm_content=bhattacharyya-chase-to-reach-business-owners-through-business-advice-center-on-wheels .
Chapter 9
1. For more on this story, see Karen Gordon Mills, Dennis Campbell, and Aaron Mukerjee, “ Eastern Bank: Innovating Through Eastern Labs ,” HBS No. 9-318-068 (Boston: Harvard Business School Publishing, 2017), https://www.hbs.edu/faculty/Pages/item.aspx?num=53399 ; Note: The author is an investor in Numerated Growth Technologies.
2. Peter Rudegeair, Emily Glazer, and Ruth Simon, “Inside J.P. Morgan’s Deal with On Deck Capital,” Wall Street Journal , December 30, 2015, https://www.wsj.com/articles/inside-j-p-morgans-deal-with-on-deck-capital-1451519092 .
3. Peter Renton, “An In Depth Look at the OnDeck/JPMorgan Chase Deal,” LendAcademy , December 4, 2015, https://www.lendacademy.com/an-in-depth-look-at-the-ondeckjpmorgan-chase-deal/ .
4. Jonathan Kandell, “Jamie Dimon is Not Messing Around,” Institutional Investor , May 21, 2018. https://www.institutionalinvestor.com/article/b189czlk410ggh/jamie-dimon-is-not-messing-around .
5. “ FastFlex ® Small Business Loan Calculator,” accessed June 26, 2018, https://www.wellsfargo.com/biz/business-credit/loans/fastflex-loan/payment-calculator/ .
6. “ Wells Fargo Works for Small Business ® ,” accessed June 26, 2018, https://wellsfargoworks.com/ .
7. Harriet Taylor, “Bank of Am
erica Launches AI Chatbot Erica—Here’s What It Does,” CNBC , October 24, 2016, https://www.cnbc.com/2016/10/24/bank-of-america-launches-ai-chatbot-erica%2D%2Dheres-what-it-does.html .
8. “After the dinosaurs,” The Economist , February 17, 2000, http://www.economist.com/node/284246 .
9. “About Us,” Frost Bank , accessed September 21, 2018, https://www.frostbank.com/about-us .
10. “Community Capital,” accessed June 22, 2018, https://www.communitytechnology.us/ .
11. “Where Top US Banks are Investing in Fintech—CB Insights,” Fintech Futures , August 14, 2017, http://www.bankingtech.com/2017/08/where-top-us-banks-are-investing-in-fintech-cb-insights/ .
12. “Citizens Bank Makes It Faster, Easier to Get Small Business Loans with New Digital Lending Capability,” Citizens Financial Group, Inc. , November 2, 2017, http://investor.citizensbank.com/about-us/newsroom/latest-news/2017/2017-11-02-110049591.aspx .
13. “Rise,” Barclays PLC , accessed June 29, 2018, https://thinkrise.com/ .
14. Ryan Weeks, “MarketInvoice Strikes Strategic Deal with Barclays,” AltFi , August 2, 2018, http://www.altfi.com/article/4631_marketinvoice-strikes-strategic-deal-with-barclays .
15. “Citizens Bank Makes It Faster, Easier to Get Small Business Loans with New Digital Lending Capability,” Citizens Financial Group, Inc. , November 2, 2017, http://investor.citizensbank.com/about-us/newsroom/latest-news/2017/2017-11-02-110049591.aspx .
16. “ Wells Fargo Labs,” accessed March 27, 2018, https://labs.wellsfargo.com/ .
17. Note: For a more detailed description of the options in this matrix, see: Karen Mills and Brayden McCarthy, “How Banks Can Compete Against an Army of Fintech Startups,” Harvard Business Review , April 26, 2017, https://hbr.org/2017/04/how-banks-can-compete-against-an-army-of-fintech-startups .
18. “2016 Small Business Credit Survey: Report on Employer Firms,” Federal Reserve Banks , April 2017, https://www.newyorkfed.org/medialibrary/media/smallbusiness/2016/SBCS-Report-EmployerFirms-2016.pdf .
19. Michael T. Tushman, Wendy K. Smith, and Andy Binns. “The Ambidextrous CEO,” Harvard Business Review , June 2011, https://hbr.org/2011/06/the-ambidextrous-ceo ; Charles A. O’Reilly and Michael L. Tushman, “The Ambidextrous Organization,” Harvard Business Review , April 2004, https://hbr.org/2004/04/the-ambidextrous-organization .
20. Shikhar Ghosh, Joseph Fuller, and Michael Roberts. Intuit: Turbo Tax PersonalPro—A Tale of Two Entrepreneurs (Harvard Business School: Harvard Business Publishing, Revised 2016), https://www.hbs.edu/faculty/Pages/item.aspx?num=49820 .
21. William R. Kerr, Federica Gabrieli, and Emer Moloney, “ Transformation at ING (A): Agile ,” HBS No. 9-818-077 (Boston, Harvard Business School Publishing, 2018), https://www.hbs.edu/faculty/Pages/item.aspx?num=53838 .
22. Karen Gordon Mills, Dennis Campbell, and Aaron Mukerjee, “ Eastern Bank: Innovating Through Eastern Labs ,” HBS No. 9-318-068 (Boston: Harvard Business School Publishing, 2017), https://www.hbs.edu/faculty/Pages/item.aspx?num=53399 .
Chapter 10
1. Sandra K. Hoffman and Tracy G. McGinley, Identity Theft: A Reference Handbook (ABC-CLIO, 2010), 11.
2. Sean Vanatta, “The Great Chicago Christmas Credit Card Fiasco of 1966: Echoes,” Bloomberg , December 24, 2012, https://www.bloomberg.com/view/articles/2012-12-24/the-great-chicago-christmas-credit-card-fiasco-of-1966-echoes .
3. “Financial Regulation : Complex and Fragmented Structure Could Be Streamlined to Improve Effectiveness,” United States Government Accountability Office , February 2016, http://www.gao.gov/assets/680/675400.pdf .
4. Elizabeth F. Brown, “Prior Proposals to Consolidate Federal Financial Regulators,” The Volcker Alliance , February 14, 2016, https://www.volckeralliance.org/sites/default/files/attachments/Background%20Paper%201_Prior%20Proposals%20to%20Consolidate%20Federal%20Financial%20Regulators.pdf .
5. “About the Federal Reserve System,” Board of Governors of the Federal Reserve System , last updated March 3, 2017, https://www.federalreserve.gov/aboutthefed/structure-federal-reserve-system.htm .
6. “Who is the FDIC?,” Federal Deposit Insurance Corporation , accessed March 27, 2018, https://www.fdic.gov/about/learn/symbol/ .
7. “About the OCC,” Office of the Comptroller of the Currency , accessed December 15, 2017, http://www.occ.gov/about/what-we-do/mission/index-about.html .
8. “Opening Remarks of FTC Chairwoman Edith Ramirez FinTech Forum Series: Marketplace Lending,” Federal Trade Commission , June 9, 2016, https://www.ftc.gov/system/files/documents/public_statements/956043/ramirez_-_fintech_forum_opening_remarks_6-9-16.pdf .
9. Michael E. Gordon and Franca Harris Gutierrez, “The Future Of CFPB Small Business Lending Regulation,” Law360 , May 19, 2016, http://www.law360.com/articles/797135/the-future-of-cfpb-small-business-lending-regulation .
10. Kevin V. Tu, “Regulating the New Cashless World,” Alabama Law Review 65, no. 1 (2013): 109, accessed March 27, 2018, https://www.law.ua.edu/pubs/lrarticles/Volume%2065/Issue%201/2%20Tu%2077-138.pdf .
11. “Vision 2020 for Fintech and Non-Bank Regulation,” Conference of State Bank Supervisors , June 7, 2018, https://www.csbs.org/vision2020 .
12. “OCC Begins Accepting National Bank Charter Applications From Financial Technology Companies,” Office of the Comptroller of the Currency , July 31, 2018, https://www.occ.gov/news-issuances/news-releases/2018/nr-occ-2018-74.html .
13. “Third-Party Relationships,” Office of the Comptroller of the Currency , OCC Bulletin 2013–29, October 30, 2013, https://www.occ.gov/news-issuances/bulletins/2013/bulletin-2013-29.html .
14. “Description: Frequently Asked Questions to Supplement OCC Bulletin 2013–29,” Office of the Comptroller of the Currency , OCC Bulletin 2017–21, June 7, 2017, https://www.occ.treas.gov/news-issuances/bulletins/2017/bulletin-2017-21.html .
15. “Examination Guidance for Third-Party Lending,” Federal Deposit Insurance Corporation , July 29, 2016, https://www.fdic.gov/news/news/financial/2016/fil16050a.pdf .
16. Steven T. Mnuchin and Craig S. Phillips, “A Financial System That Creates Economic Opportunities: Nonbank Financials, Fintech, and Innovation,” U.S. Department of the Treasury , July 2018, https://home.treasury.gov/sites/default/files/2018-07/A-Financial-System-that-Creates-Economic-Opportunities%2D%2D-Nonbank-Financi…pdf .
17. Barbara J. Lipman and Ann Marie Wiersch, “Alternative Lending Through the Eyes of ‘Mom & Pop’ Small-Business Owners: Findings from Online Focus Groups,” Federal Reserve Bank of Cleveland , August 25, 2015, https://www.clevelandfed.org/newsroom-and-events/publications/special-reports/sr-20150825-alternative-lending-through-the-eyes-of-mom-and-pop-small-business-owners.aspx .
18. Barbara J. Lipman and Ann Marie Wiersch, “Browsing to Borrow: Mom & Pop Small Business Perspectives on Online Lenders,” Federal Reserve Board and Federal Reserve Bank of Cleveland , June 2018, https://www.federalreserve.gov/publications/files/2018-small-business-lending.pdf .
19. “Unaffordable and Unsustainable: The New Business Lending on Main Street,” Opportunity Fund , May 2016, http://www.opportunityfund.org/assets/docs/Unaffordable%20and%20Unsustainable-The%20New%20Business%20Lending%20on%20Main%20Street_Opportunity%20Fund%20Research%20Report_May%202016.pdf .<
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