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Article on Community Lending from today's American Banker

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Fintech for Underbanked: The Next M&A Hot Spot?byRobert Barba NOV 7, 2013 5:06pm ET

Think the onset of consumer protections laws stymied M&A for companies who serve the underbanked? You're wrong.
Between July 2012 and June 2013, there were 85 investment banking transactions involving companies in the financial technology and specialty lending realms that focus on consumers with low-to-moderate incomes, according to a study released Wednesday. The authors are the Center for Financial Services Innovation and Core Innovation Capital, a $50 million venture capital fund that specializes in the underbanked market.

The data show the acquisitions, initial public offerings and equity investments had a combined value of $5.2 billion in capital.
The study, which was sponsored by Morgan Stanley, was the authors' first on this topic, so it is unclear if the activity in the year leading up to June 30 rose or fell from past years. That kind of assessment is for next year — this year&…