I've been thinking about portfolio management and the use of portfolio management information. My thoughts have centered on the need for financial institutions to gain more value from existing data sources and how else this information could be used.
It’s easy to pay the cost for the traditional origination process of middle market credits. There’s plenty of margin. But what happens when the size of the business credit is smaller—say $250,000 or less? How do you generate enough money to pay for originating small business loans?
The definition of a “law of nature” is “a regular occurring or apparently inevitable phenomenon observable in human society.” The sun rises in the east, sets in the west. Death and taxes are inevitable. In finance and business, capital needs to come before debt in the construction of a sustainable business balance sheet. Are we seeing a FinTech force that is trying to work against a law of nature? Is there a bait and switch tactic going on in the industry that is being masked by “digital experience” and technology?