AUSTIN, Texas "Disruption" may be quickly turning into a punch line, but another buzzword is striking fear into bankers' hearts these days: "unbundling."
This is the idea that nimble, fintech companies like marketplace lenders Lending Club and Prosper, wealth management app providers Betterment and Wealthfront, and personal finance management innovators Level Money (which was recently bought by Capital One) and Moven are extracting the profitable, customer-facing parts of the banking business. This relegates banks to the role of a utility, handling low-margin transactions.
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