How Lehman Collapse Started the FinTech Fire

By Chris Skinner via

It’s interesting that the Global Financial Crisis (GFC) sparked by Lehman Brothers collapse in September 2008 sparked the FinTech revolution, according to some. I personally think FinTech was bubbling away before the GFC but, certainly, the GFC led to massive investment focus upon changing the system (almost $100 billion since 2010).

Equally, the collapse of Lehman Brothers did lead to lots of former investment bankers launching FinTech start-ups. One example is Revolut, “a secure, mobile-based current account that allows you to hold, exchange and transfer without fees in 25 different currencies”.  Recently valued at $1.7 billion, it’s a FinTech unicorn created by Nikolay Storonsky, a former employee of Lehman Brothers. And it’s not the only one.

Many bankers have left the banks to found start-ups in FinTech, such as:

Anil Stocker, co-founder of MarketInvoice

Founder Anil Stocker worked at Lehman Brothers before it collapsed, while his co-founder Ilya Kondrashov is a Goldman Sachs alumnus. This peer-to-peer lending platform lets companies borrow against unpaid invoices online. £400 million ($612 million) has been lent since launch and lending volumes are growing by an average of 30% each month.

Ronnie Mateo, CEO of Trumid Financial