by Michael Tarsala
A fresh and objective report from the merchant bankers at CoRise names the movers and shakers that are set to democratize and revolutionize finanical markets in the coming years.
It’s an independent look at businesses that are improving the exchange of ideas and information, directing capital in better ways, and killing off the financial supermarket concept.
The report makes the case for radical changes. New and more efficient players are doing a better job of linking investors with issuers, lenders with borrowers and buyers with sellers.
Those firms are challenging the big banks, traditional money managers and old-school brokers, among others. And they are doing it with innovative, efficient and democratic services (as in the fees you pay and the services you receive are not based on your status or the size of your account).
I have made the case before that these types of firms do most if not all of the following:
- Provide one type of service (they are not a one-stop shop for your every finanical need).
- Use the Internet to improve transparency and customer choices
- Offer sophisticated services to those with a lot of money, and those without it
- Communicate fees clearly and help customers avoid the exorbitant ones
Here are the evolving platforms named in the CoRise report:
Source: CoRise
When it comes to exchanging financial ideas, CoRise mentions Covestor, recent NextInvest attendees Benzinga and Stocktwits, and FutureAdvior, a new entrant that I reviewed just this week.
In peer-to-peer lending CoRise lists Lending Club, along with competitors Prosper, UK-based Zopa, China’s Creditease and charity-focused Kiva. I took on the topic of peer-to-peer lending in a NextInvest panel discussion this week with Covestor CEO Asheesh Advani, who helped to pioneer the space.
In clearance and payments, it’s PayPal, of course, but also other recent entrants such as Square, Dwolla and Stripe.
There’s also a look at alternate currencies in the report.
Check it out. I found it to be a quick, insightful read that will help you get the future lay of the financial land.
Source: CoRise
