Why insurance — not lending — is the next big thing in fintech

Online lenders have only been around for a decade, but the sector is already crowded. Upstart lenders will likely have a hard time attracting funding, as venture capitalists have started placing their bets elsewhere, according to Sam Hodges, co-founder and U.S. managing director at Funding Circle.

"Virtually every venture capitalist I know is excited about insurance as the next big thing in fintech," says Hodges.