fintech.ut, so, too, when it comes to the bigger funds. and our next guest says this is the year that groups embrace it. you're the industry body for fintech. why do you think this year, capital markets are slowly opening up to the idea of fintech. >> in previous years, we've seen heavier investments in retail space like pier to pier and lending. and there are a lost opportunities in looking at fintech technologies. >> what are those opportunities? what is the starting point? is it about driving down cost as a bit of performance? what's the starting point for fintech? >> there's a bit of everything. one of the biggest trends we're seeing this year is in the behavior analytic space. that's making sure your active manager, trading effectively. using data and al gogorithalgor like peak sports stars. >> using it together, down the track, do you think it will reveal about the machine making its own decisions without artificial intelligence and machine learning? >> that personally i think is a long

where fintech has taken root.ina, financial services using smartphones began five years ago and have been rapidly expanding in the past three years. ja lei works for an i.t. firm in shanghai. as chief of the beijing branch, he has been going on business trips several times a year. his smartphone has become an irreplacement part of his routine. since online financial services began, jai hardly ever carries around cash. he uses the qr codes of various stores to pay for purchases. ♪ store clerks check customers' phones to finish payment. in china, there is no service charge for deposits within the same bank in a city. but a charge is applied for remittances from bank "a" to bank "b." financial service companies using smartphones have partnerships with all banks, enabling individuals to transfer money between any bank without paying a charge. now any small vendor in beijing can allow payment via smartphones. that's because no equipment is needed. sellers simply download apps on their smartphones, register their bank a

fintech and the marketplace lending market, and few know more than charles moldow who is joining usrom palo alto, and good morning to you, charles. >> good morning. >> we have heard for a long time that the banking industry was ripe for disruption, but how hard is it to actually take on wall street at traditional competencies that they have been good at for years? >>> it is hard to disrupt any mature industry, and this is a little bit harder, because you have a regulatory overlay in the early stage companies have to become competent in or maybe that is not the case in others, but i would remind you that even when one of our early investments from years ago netflix, the incoumbents like blockbusters were thought to put it out of business, and then it was walmart, and the companies that with great products that the customers and do it cost effectively will always have a place in the market, whether that's in the movie business or the distribution or in fintech, and that is absolutely true. >> but netflix was sending dvds to consumers and keeping someone's money safe and sound and grow

i'm wondering if you think any part of the fintech sector needs regulation sooner than others?ll, i think anything that controls consumers money obviously needs more protection than when it doesn't. and so to me anything on the wealth management side is probably the area where you might want to look most closely as compared to let's say remittances or the lending space. predatory lending of course is bad, but really that's in the subprime space. you mentioned lending club, that's not a space lending club plays in for example. >> but we have seen a lot of small businesses, a lot of consumers when they either get turned down for a loan from a bank or they just want to exclut the bank from the process altogether, they've been going to alternative lenders. how is that trend shaping up? where is the safest place for someone to get a loan outside the banking sector right now? >> i would say for anybody who's a prime consumer, you know, those that are in the economy with good fico scores, there are a tremendous number of alternatives. and they're all quite safe. the predatory lending

they want more regulation of fintech companies in particular. cam fine will join us to explain after the bell. >>> we start with janet yelllye speaking. >> the latest market data raised the latest favorable possibility that firms may have instead have decided to expand their operations more slowly, and i intend to continue to pay close attention to developments in this area. >> so many think a june rate hike is off the table. let's ask. we have cnbc contributor jack. welcome, everybody. eugene, first to you. just as we were anticipating a rate hike, now it looks like it's off the table, or is that your opinion? >> i think they have decided the glass is half full. the interest rates are not going to be going higher but i'm more tepid than that. i'm looking at the economic data. i think the fed chair was really playing game of trying to calm markets by saying it's all fun, don't pay a whole lot of attention to it. but i don't think we'll get a rate hike in jewel. >> jack, did they successful calm market because despite speight the disappointing nu

and for these european companies being able to build the fintech startup, we're going to lose that ifxits. there seems to be a fear of people saying we want to stay in. but we haven't gotten a list yet. >> you can see the first attracters on linkedin on our website cnbc.com. >> e-mail the show, @cnbc.com. you can feet us directly. >> i'm @nancycnbc. >> and i'm @louisabojesen. and approaching it coming up. >> all the undecided voters are expected to be skewed more heavily for remain. that would be a huge factor. >> we've got massive coverage coming up on friday when the results hit. >>> coming up on the show, could the uk referendum be the end of the euro experiment? our next guest says that a brexit could be just the first domino to fall. we'll take a closer look just after the break. see you then. >>> good morning and welcome back to "street signs." mark zuckerberg has strengthened his control over facebook, after shareholders vote todd to appro restructuring of the stock offering. jul jul julia boorstin has been covering the meeting. >>> mark zuckerberg and his board to solidify a r

co-founder of the fintech services start-up. hello watson.al media and conversations on various trading floors, helps us uncover insights. insights that help investors predict market closes, well before markets close. you know, your analysis has helped us improve our predictive accuracy by over 500%. 550.2, to be precise, but we can always do better. i like your attitude watson. >>> the "final trade." tim? >> we're talking about big cap tech. also things in intel. up around $35. a range trade. i don't hate this company but i think you can sell this, especially if you think the markets are pulling back. a name that will not hurt you on the down side. >> we talked about it before. the s&p put if you hold them, if you own them, hold them. i think the volatility will go up a little more and you'll have a chance to roll out of them at a better price. >> grasso? >> ridiculous as this sounds, gdx up 9%. i still think it's a buy. i'm still long. you might see a couple of pullbacks. gdx, buy. >> what's that game you were playing? grand theft auto? >>

we've got the fintech teams. there's a lot going into fintech than others these days.hat's traditionally disruption stuff. we do have disruption in politics. we had veins bulging in his neck last time. mark reed and mark penn going out with 25 u.s. mayors, half democrat, half republicans. we had the president, chairman and secretary of the mayor for sanders. there is only one, the mayor, of course, madison, wisconsin. it was pretty interesting, we continue on that debit with political disruption. secretary of health in this morning. we have the ceos of valeant. >> talk to us about papa, do you think he can actually do the job. >> papa can, of course he was given a terrible, terrible hand. >> do you think he knew the terrible hand was he given? >> yeah. >> do you think he knew how bad it was going to be? >> stuff was coming out in the fall. if you'll forgive me, "the wall street journal" revelations were fantastic. as that stuff was pouring out we started to see there was real troubles out there, of course, bethany's piece was fantastic. it seems like misrepresentations

co-founder of the fintech services start-up. hello watson. your analysis of social media and conversations on various trading floors, helps us uncover insights. insights that help investors predict market closes, well before markets close. you know, your analysis has helped us improve our predictive accuracy by over 500%. 550.2, to be precise, but we can always do better. i like your attitude watson. thank you. 550.2, to be precise, but we can always do better. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business. on their auto insurance. wouldn't a deal involve two parties discussing something? a little give? a little take? because last time you checked, your rate was just, whate

co-founder of the fintech services start-up. hello watson.analysis of social media and conversations on various trading floors, helps us uncover insights. insights that help investors predict market closes, well before markets close. you know, your analysis has helped us improve our predictive accuracy by over 500%. 550.2, to be precise, but we can always do better. i like your attitude watson. 550.2, to be precise, but we can always do better. ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ >>> is we're only 12 minutes away until fed chair janet yellen makes a decision on interest rates, let's preview the fed with daniel demartino booth. money strong and kevin logan chief u.s. economist at hsbc. i want to talk to you about something we were talking about in the break. the shootings in orlando, potentially having a ripple effect toward the fed. explain that line, it's not as crazy as you might think. >> as tragic as the events were, i think the tragedy fed the fear factor among so many peo

co-founder of the fintech services start-up. hello watson. your analysis of social media and conversations on various trading floors, helps us uncover insights. insights that help investors predict market closes, well before markets close. you know, your analysis has helped us improve our predictive accuracy by over 500%. 550.2, to be precise, but we can always do better. i like your attitude watson. premium like clockwork. month after month. year after year. then one night, you hydroplane into a ditch. yeah... surprise... your insurance company tells you to pay up again. why pay for insurance if you have to pay even more for using it? if you have liberty mutual deductible fund™, you could pay no deductible at all. sign up to immediately lower your deductible by $100. and keep lowering it $100 annually, until it's gone. then continue to earn that $100 every year. there's no limit to how much you can earn and this savings applies to every vehicle on your policy. call to learn more. switch to liberty mutual and you could save up to $509. call l

co-founder of the fintech services start-up. hello watson.onversations on various trading floors, helps us uncover insights. insights that help investors predict market closes, well before markets close. you know, your analysis has helped us improve our predictive accuracy by over 500%. 550.2, to be precise, but we can always do better. i like your attitude watson. >>> welcome back to squawk this morning. stocks to watch. amazon.com rated outperform in new coverage coming from william blair. the firm saying its rating is primarily due to potential growth for the company's amazon web services business. >>> when we come back, it is a very special day at cnbc. one of our own is celebrating a big anniversary, and we will join the fun when "squawk box" comes right back. ♪ i could get used to this. now you can. when you lease the 2016 es 350 for $329 a month for 36 months. see your lexus dealer. so we don't have to wad to get clean.t charmin ultra soft gets you clean without the wasteful wadding. it has comfort cushions you can see that are softer.