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titanic1

Google and Amazon are ready to disrupt small business lending

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 titanic1    244

Tech behemoths Google and Amazon are poised to put competitive pressure on traditional banks in the small business lending arena, one of former President Barack Obama's cabinet members said Tuesday.

Karen Mills, who served as Obama's administrator for small businesses, told CNBC that the tech giants would probably push to disrupt the market and deal a blow to established lenders.

"I think they are going to dominate the market, and that is the next phase that's coming," she told the LendIt Europe fintech conference in London.

"But the question is, in what form would that come, and... under what regulatory authority?"

Earlier this year, Amazon said it had lent more than $1 billion in small business loans to merchants looking to expand their businesses, via its website.

https://www.cnbc.com/2017/10/13/google-and-amazon-are-ready-to-disrupt-small-business-lending-former-obama-advisor-says.html

Amazon and Google are reportedly in a position where they are likely to enter, and dominate, the small business lending market. This comes from a new report out of CNBC which credits Karen Mills for the comments. Mills, formerly the administrator for small businesses to former President Barack Obama, was noted providing the comments while speaking at the LendIt Europe fintech conference, in London.

According to those comments, Mills not only expects the likes of Amazon and Google to enter the market but also to almost instantly cement their position as a direct alternative to traditional banking and lending options. The reason Mills expects the impact of Amazon and Google to be so definitive and instant is due to the information both companies have collected over the years. For example, if a small business what to apply to Google, then it could be the case that Google would already have much of the data it needs to determine whether the business is one that can be lent to. As a result the suggestion being made here is that these large tech companies would be in a position to very quickly and efficiently put together a system that is able to process lending requests based on real and substantial data. Something which while evidently beneficial to the likes of Amazon and Google, would likely be as beneficial to those seeking funds in the first place. However Mills does note that at the moment there is still the question over which regulatory authority would oversee new entrants to the lending field, drawing on the current “spaghetti soup” of authorities as an example of how the regulating of companies like Amazon and Google may prove difficult.

https://www.androidheadlines.com/2017/10/report-amazon-google-to-dominate-small-business-lending.html

Amazon.com Inc. (AMZN
Amazon.com Inc
AMZN
1,002.94
+0.20%

) and Alphabet Inc.(GOOGL
Alphabet Inc
GOOGL
1,007.87
+0.22%

) subsidiary Google are perfectly equipped to displace banks as the main lenders to small businesses, a former President Barack Obama cabinet member with expert knowledge of the sector has claimed.

Karen Mills, a fellow at Harvard Business School and former White House administrator for small businesses, said at the LendIt Europe fintech conference in London that the two tech giants have what it takes to eventually “dominate the market” at the expense of established lenders.

Her comments came amid calls from some quarters for the federal government to begin granting technology companies special banking charters to improve small business access to funding. Speculation that a revamp of financial regulation for fintech firms could be coming, she claimed, has already struck fear into traditional lenders, many of which recognize that companies such as Amazon and Google have better resources in place to win over smaller businesses.

"If you look at the small business hierarchy needs, they need access to cash, funds, they need time, and they need more sales," she said. "And what if you were able to provide an efficient system that gave them more time to do all their work, access to capital and something that boosts their sales line? You could see how that player could win over a traditional player or even a new fintech."

Amazon has already started to branch out into the lending sector. Earlier this year, the ecommerce giant lent over $1 billion in small business loans to merchants via its website. As of June, Amazon had reportedly handed out $3 billion to help small firms expand inventory and introduce new products.

Read more: Google and Amazon Could Disrupt Another Industry | Investopedia http://www.investopedia.com/news/google-and-amazon-could-disrupt-another-industry/#ixzz4vWX3dzv1
Follow us: Investopedia on Facebook

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 phxsparks    1,584
2 hours ago, titanic1 said:

Tech behemoths Google and Amazon are poised to put competitive pressure on traditional banks in the small business lending arena, one of former President Barack Obama's cabinet members said Tuesday.

Karen Mills, who served as Obama's administrator for small businesses, told CNBC that the tech giants would probably push to disrupt the market and deal a blow to established lenders.

"I think they are going to dominate the market, and that is the next phase that's coming," she told the LendIt Europe fintech conference in London.

"But the question is, in what form would that come, and... under what regulatory authority?"

Earlier this year, Amazon said it had lent more than $1 billion in small business loans to merchants looking to expand their businesses, via its website.

https://www.cnbc.com/2017/10/13/google-and-amazon-are-ready-to-disrupt-small-business-lending-former-obama-advisor-says.html

Amazon and Google are reportedly in a position where they are likely to enter, and dominate, the small business lending market. This comes from a new report out of CNBC which credits Karen Mills for the comments. Mills, formerly the administrator for small businesses to former President Barack Obama, was noted providing the comments while speaking at the LendIt Europe fintech conference, in London.

According to those comments, Mills not only expects the likes of Amazon and Google to enter the market but also to almost instantly cement their position as a direct alternative to traditional banking and lending options. The reason Mills expects the impact of Amazon and Google to be so definitive and instant is due to the information both companies have collected over the years. For example, if a small business what to apply to Google, then it could be the case that Google would already have much of the data it needs to determine whether the business is one that can be lent to. As a result the suggestion being made here is that these large tech companies would be in a position to very quickly and efficiently put together a system that is able to process lending requests based on real and substantial data. Something which while evidently beneficial to the likes of Amazon and Google, would likely be as beneficial to those seeking funds in the first place. However Mills does note that at the moment there is still the question over which regulatory authority would oversee new entrants to the lending field, drawing on the current “spaghetti soup” of authorities as an example of how the regulating of companies like Amazon and Google may prove difficult.

https://www.androidheadlines.com/2017/10/report-amazon-google-to-dominate-small-business-lending.html

Amazon.com Inc. (AMZN
Amazon.com Inc
AMZN
1,002.94
+0.20%

) and Alphabet Inc.(GOOGL
Alphabet Inc
GOOGL
1,007.87
+0.22%

) subsidiary Google are perfectly equipped to displace banks as the main lenders to small businesses, a former President Barack Obama cabinet member with expert knowledge of the sector has claimed.

Karen Mills, a fellow at Harvard Business School and former White House administrator for small businesses, said at the LendIt Europe fintech conference in London that the two tech giants have what it takes to eventually “dominate the market” at the expense of established lenders.

Her comments came amid calls from some quarters for the federal government to begin granting technology companies special banking charters to improve small business access to funding. Speculation that a revamp of financial regulation for fintech firms could be coming, she claimed, has already struck fear into traditional lenders, many of which recognize that companies such as Amazon and Google have better resources in place to win over smaller businesses.

"If you look at the small business hierarchy needs, they need access to cash, funds, they need time, and they need more sales," she said. "And what if you were able to provide an efficient system that gave them more time to do all their work, access to capital and something that boosts their sales line? You could see how that player could win over a traditional player or even a new fintech."

Amazon has already started to branch out into the lending sector. Earlier this year, the ecommerce giant lent over $1 billion in small business loans to merchants via its website. As of June, Amazon had reportedly handed out $3 billion to help small firms expand inventory and introduce new products.

Read more: Google and Amazon Could Disrupt Another Industry | Investopedia http://www.investopedia.com/news/google-and-amazon-could-disrupt-another-industry/#ixzz4vWX3dzv1
Follow us: Investopedia on Facebook

Take Amazon and Google, break them up just like Bell Telephone was broken up.  The government can do this any time it chooses.

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 JayDee    1,520

The world will not be enough for companies like these if they're allowed to grow unchecked. 

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