We make loans decisions in seconds: Bizfi founder

I hope we have regulation: Bizfi founder

The intersection of finance and technology, known in the industry as fintech, does not necessary pit major banks against internet lenders, Stephen Sheinbaum, founder of online financing marketplace Bizfi, said Wednesday.

"I think you're going to see more collaboration and working with us as opposed to acquisitions," he told CNBC's "Squawk Box." "I think you're going to see the major banks and the community banks leverage our technology and our ability to make decisions in fractions of seconds, as opposed to the weeks and months it takes now."

Sheinbaum said his company strives to make the front end of the business loan process as "frictionless and seamless" as possible. "I think the fintech guys are going to be able to take as little information as possible from a business owner," and then use big data to get additional information about the borrower.

Some of the publicly traded companies in the online lending space include LendingClub, On Deck Capital and LendingTree.

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Looking more broadly at the fintech industry, "consumer lending is moving the quickest," Sheinbaum said. "Next will be small business, and large business lending I think will be the last of the three to catch on."

"I don't think we'll see loans for millions and millions of dollars or billions of dollars being made by fintech guys without sitting down with customers," he said.

The Office of the Comptroller of the Currency, which recently issued a white paper on fintech, said there may be room for different regulations for traditional banks and online lenders.

"I think there will be some different sets of rules to play by," said Sheinbaum.

"But I think at the end of the day, it's going to be about transparency and making sure that the borrowers know exactly what's going on and the field is as level as it can be amongst the competitors," he added.

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