To what extent fintechs could possibly disrupt the market is still hard to predict. But the lending business is no doubt undergoing a paradigm shift.

The old model of commercial banks was the interest rate spreads and fees backed by fairly rigid regulatory and sophisticated licensing regimes. The conventional perception of commercial banking functions consists of expanding deposits into a significant scale and then chasing after well-connected large businesses to extend credit. Hence, private small enterprises are usually underserved, suffering financial challenges at different critical moments of their life-cycle.