There are many reasons for a banker to lose sleep these days. The issues affecting banks year after year are myriad: increasing competition from traditional and non-traditional players, margin compression in the low interest rate environment playing havoc with bank income statements, ongoing saga of additional regulation means more work to an already stretched workforce.
Marketplace lending for small businesses is a hot topic. Private equity is dropping dollars galore in companies like Lending Club and Prosper. Articles are portraying the “Uber-ization” of lending. Is this the end of small business lending by banks as we know it?