The Centre for the Study of Financial Innovation is a forum for debate and research about the future of the international finance services sector.
From Peer2Here: how new-model finance is changing the game for small businesses, investors and regulators
A CSFI report by Andy Davis
With support from CMS
The explosive growth of new sources of finance for small businesses over the past five years represents a revolution in choice for borrowers and in investment opportunities for individual savers. But the challengers remain just that compared with the dominant market share of the big banks, and mass-market investment in these alternative assets is in its infancy.
Davis suggests that in response to these pressures, hybrid models will develop. Established direct lenders will increasingly use P2P platforms to syndicate their loan books into the retail market; P2P firms may, in addition, start to deploy their own balance sheets, like a bank (which will increase their profitability), or run collective investment schemes, like an asset manager. In other words, the boundaries between established and alternative providers of funds for SMEs will become more blurred, and the sources of those funds will expand to include a wider universe of investors.
It is easy to be dazzled by China’s economic revolution and simply to assume that the economy will continue its progress, no matter what. However, even judging by the government’s own data, the situation is not as rosy as the Chinese Communist Party would have the world believe. Much of the discussion about China’s corporate debt burden has revolved around the urgency of the problem, with some predicting a crash, stagnation, or both. Meanwhile, others assume that the CCP’s track record means that nothing much will happen at all. Comparatively little has been said about how China might tackle its debt burden: this paper articulates one suggestion.
Jane Fuller, CSFI co-director, sat down with Francesco Guerrera (Politico) and Sam Tymms (Promontory) to discuss whether there is a regulatory pendulum in banking - and in whose favour it is swinging.
Jane Fuller, CSFI co-director, discusses the Office of Tax Simplification's agenda for 2016 and beyond.
Christine Allison, CSFI Financial Inclusion Fellow, talks to Malcolm Brown, director of the Church's Mission & Public Affairs Department, about the role of the Church of England in providing socially responsible financial services.
Jane Fuller, co-director of the CSFI, talks to Brian Bartaby (CEO of Proplend) following the Centre's April 26 round-table on innovations in property finance.
Jane Fuller, co-director of the CSFI, talks to Tim Jones (former CEO of NEST) following the Centre's March 7 round-table on the Chancellor's priorities for pensions reform.
The CSFI aims to bridge the gap between emerging financial innovators and established institutions through a programme of round-tables, presentations, product demos and workshops. Contact Harry Atkinson to find out more.
Financial World is the journal of The London Institute of Banking & Finance. Published six times per year in association with the CSFI, Financial World aims to bring together thought-provoking research and commentary on the health of the domestic and international financial services sector. The journal reaches around 20,000 financial services professionals, including all corporate and individual supporters of the CSFI.
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