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How Banks Can Compete Against an Army of Fintech Startups

Harvard Business Review

It’s been more than 25 years since Bill Gates dismissed retail banks as “dinosaurs,” but the statement may be as true today as it was then. Other sectors of retail lending have not fared much better. Banks’ cost of capital is typically 50 basis points or less.

Banking 11
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Case Study: A Short-Seller Crashes the Party

Harvard Business Review

Half a dozen companies worldwide are licensed to manufacture the machines and pods and sell them to retailers and distributors, paying royalties to Terranola on each sale. With the company’s share price sinking and its cost of capital rising, those deals might have to be put on hold. Terranola had been moving forward with A.J.’s