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"Given the rapid rise in the number of marketplace lenders who often compete with traditional lenders for the same borrowers," Whaaat? Facts point to exactly the opposite: Marketplace lenders are bottom feeders and cater to the segment of the market that banks have shunned. They're already facing well-publicized problems selling their debt to finserv, there's no systemic risk if they fail. 

This is self-fulfilling prophecy. Not because what it says will make it come true. But because people will forget what it says in 20 days.

I think they are. Except under extenuating circumstances, I have little pity for people who take loans with their free will and volition and then callously default on them. I hope they're driven to "undesirable, unregulated options" that harrass them enough so that they learn to take more responsibility for their actions and stop taking advantage of the popular sentiment against banks and payday loan companies to renege on their commitments.

Let Banks Chase Their Defaulters Instead Of Seeking Bailouts

For every one person who behaves like that, there's a genuine bank / finserv customer who suffers from higher fees or unfavorable interest rates or in some other way.

This has the mark of a great product and the source of several clones. Tying up with payroll processing firms is a masterstroke for more reasons than one: It gives immediate and direct access to members in the target market, thereby cutting down CAC, which is fast proving to be the bugbear of most fintechs; it gives access to historical pay, etc. Not clear how a mere integration with payroll firms will enable the app to auto deduct repayments from bank accounts - normally payroll firms can only send money to - not take money from - bank accounts. I guess that will be the company's hidden secret sauce!

Finsurgents have been telling banks to unlock the power of customer data for cross/up selling.

Analytics or Hair Splitting?

NAB has now shown how just well banks can do that. Hope finsurgents are cheering.

There's the small matter of customer privacy but I don't see anyone talking about it when regulators tell banks to share customer data with fintechs. So it shouldn't matter when the data flows in the reverse direction either.

@JuergenRahmel + 1. I totally agree that "there is no 100% prevention". Problem with overzealous prevention strategies is that they tend to throw the baby out with the bathwater. Once the current VC-funded fintech exuberance fizzles out, fintech will realize that it is their responsibility to "resolve such issues transparently as they appear." and that trying to justify issues on the grounds of "trailblazing technology" is naive.

@KenOverholt + 1. Who is to decide whether DAO was a premature application released without proper testing? Why does the common man need to know the difference between ethereum and ether, let alone the difference between which of the two, or neither, was hacked? One moment, DAO had money. A moment later, DAO lost that money. If that kind of thing happens repeatedly, that's all the knowledge that the common man needs to have to lose faith in cryptocurrencies.

Less than a year ago, there were many US retailers who were eschewing EMV altogether on the grounds that their fraud losses were too small to justify the cost of upgrading their POS infra to accept chip cards e.g. Panda Restaurant Group with 1800 restaurants (cf. http://www.bloomberg.com/news/articles/2015-10-01/credit-and-debit-cards-lag-on-emv-upgrades).

Good luck to them in their current endeavor to convince the courts that they were willing and ready to go all the way to implement Chip+PIN last year.

Looks like nothing much has changed in the attitude of US retailers in the five years since I wrote Do Retailers Want To Have Their Cake And Eat It Too?

LOL @JerrySilva, child is now *mother* of the man! Going by my daughter, I'm guessing that if your daughter sees your comment, the difference between "there" and "their" would be least of your worries!

From "islands of information" at one point in time to "islands of innovation" now. Is that progress or what?!