BBVA economists describe crowdfunding as “a disruptive innovation that commercial banks cannot ignore”.
From here on, they will face a new competitor with lower operating costs, a different approach to risk management and a simpler product offering. To what extent crowdfunding platforms will displace commercial banks in the retail and small business segments remains to be seen. However, banks should be prepared for this trend and make it work to their advantage.
Always had great respect for the economic research team at BBVA… they actually write thoughtful and substantive stuff, unlike many overly commercialized commentaries out there. (link to report)
We hope to ship soon!
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