When you are a FinTech start up your first priority should be building trust as a foundation. That trust has been reflected in my FinTech is a Lifestyle post. The technology should be part of your daily life which involves your money transaction, private conversations and health status. Security, business practice and business ethics should be at highest standard. Failure to achieve it will fail the company.
Examples of the companies were built on the New Economy of Trust:
Airbnb was built on top of the trust economy – who dare to let a stranger into your house? here is a fascinating ted video from the Airbnb founder
Uber is also built on top of the trust economy – who dare to let a stranger to sit in your car; who dare to let a stranger to drive you to a place?
Therefore when the hot Fintech start up LendingClub’s CEO was fired for faulty loans that did not meet the investor’s explicit instruction and resell the loan to other investors. Even at small fraction of LendingClub’s worth at 22 Millions.
A key principle of the company is maintaining the highest levels of trust with borrowers, investors, regulators, stockholders and employees. While the financial impact of this $22 million in loan sales was minor, a violation of the company’s business practices along with a lack of full disclosure during the review was unacceptable to the board – Hans Morris New Executive Chairman of LendingClub