Tech behemoths Google as well as Amazon are poised to put competitive pressure on traditional banks from the smaller business lending arena, one of former President Barack Obama’s cabinet members said Tuesday.
Karen Mills, who served as Obama’s administrator for smaller businesses, told CNBC in which the tech giants would certainly probably push to disrupt the market as well as deal a blow to established lenders.
“I think they are going to dominate the market, as well as in which is usually the next phase in which’s coming,” she told the LendIt Europe fintech conference in London.
“although the question is usually, in what form would certainly in which come, as well as… under what regulatory authority?”
Earlier This kind of year, Amazon said This kind of had lent more than $1 billion in smaller business loans to merchants looking to expand their businesses, via its website.
Online business loans have increasingly become the priority of quite a few financial technology (fintech) lenders. U.S. digital lender Lending Club, for instance, allows investors to loan money directly to smaller as well as medium-sized enterprises (SMEs).
“When I look at This kind of coming from a U.S. view as well as a global view, the banks are going to come back in full force, including Barclays as well as others, as well as then on top of in which you’re going to have definite presence of Amazon players,” Mills told CNBC in an interview after the conference.