Could Crowdfunding Be Right for Your Business?

Description

Crowdfunding is among the fastest growing segments in the financial industry. This article, based on research and teaching at IESE in this emerging area, outlines the various options currently on the market. Although these funding alternatives are by no means perfect, they have several strengths that traditional banks would do well to bear in mind: nimble, personalized, efficient, accountable, transparent, character-based as opposed to purely collateral, credit-based; in other words, human. Those are the new guiding principles for a financial industry that needs to restore consumer confidence and compete with a new breed of tech-driven players.

Keywords

AI algorithms Analytics Artificial intelligence Automation Banks Big data bitcoin Blockchain Cash flow cloud computing consumerization credit score cryptocurrency democratization digital payments Disintermediation easier access Efficiency Finance Fintech Fraud Internet of Things Julie Hanna Kiva Micro Finance Millennials Moral hazard P2P peer-to-peer Personalization Platforms smart contract SMEs social business model social media networks speed startups Technology tokenization traditional financial service provider unbundling