'Velocity For Money': Gene Munster Talks Innovation, Automation And The Economy

Gene Munster, a reputed specialist in the internet, finance services and technology fields, spoke Tuesday with Joel Elconin, co-host of PreMarket Prep, about the future of fintech and whether innovation in the space is good for the economy.

During a discussion regarding what's missing in the space, a central talking point was highlighted: consumers are financially unhealthy and effective digital solutions aren't present.

“[The] next wave of products [should focus] more around financial wellness,” Munster said Tuesday at the Beninga Global Fintech Awards in New York City.

Munster was one of the top technology analysts on Wall Street for nearly two decades before launching Loup Ventures in 2017.

Growing Debt, Poor Credit

Financial wellness concerns an individual's overall financial health. A large problem in society is the growing burden of debt and poor credit among consumers.

Elconin pointed to the tightening of regulations regarding credit, saying large institutions have monopolized the space, making it hard for average consumers to obtain debt and leverage.

Munster implied that innovations in fintech are allowing disruptors to appear and incumbents to evolve.

“From a consumer standpoint, if you don’t have good credit, it’s hard to obtain [debt],” Munster said Tuesday.

In the near future, Munster sees fintech companies spending more time on tools that monitor and help debtors improve their credit worthiness.

He noted incumbent lending institutions will too see change. More specifically, he said the commercial loan space will see automation.

Munster alleged that the underwriting and lending process is extremely laborious; the evolution and disruption brought by fintechs will reduce borrowing obstacles, and increase automation in the workplace.

Munster said the jobs displaced by the rise in automation will be a small price to pay for the increase in lending and liquidity.

Ultimately, Munster said, "The more velocity for money … I view that as better for the economy."

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Photo by Mandar Parab.