Filling the bank-shaped hole: Europe’s banks are shrinking. What will take their place?

Doing Less with Less

 

 

OF THE things you expect to encounter in a financial firm nowadays, hope is not high on the list. Panoramic views, insincere receptionists, plates of uneaten biscuits, yes. Optimism, no. But this is a time of huge opportunity in finance—as long as you are something other than a bank.

Take one of British finance’s minnows. MarketInvoice is a start-up that runs an electronic marketplace in which small firms sell their unpaid invoices to investors at a discount. This lets credit-starved businesses get hold of cash faster than they otherwise would, and gives the buyers a return on the invoices they snapped up. Small firms have received £40m ($64m) via MarketInvoice since it was launched in 2011. Anil Stocker, an ex-Lehman banker and one of the firm’s founders, says his big problem is controlling growth, so as to maintain the quality of the invoices.

Read More at the Economist



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