The Disappearing Bank

Once financial services were digital, they no longer needed to exist as discrete products; they could become embedded in software that consumers and businesses use all day long, and with which they have a durable and data-rich relationship. We are early in that process, and it requires imagination to see where it ends. For a while, it’s just going ... See more

While this has largely held true, they don’t have a lower cost of capital, which is critical to a banks revenue potential under their existing business models. As some of these companies are looking to go public there will be enhanced scrutiny on monetization which, we believe requires innovation on the business model to a subscription model.

Fintech has a lot to learn from products like Figma and Dropbox. Social financial products will have as much in common with Pinterest as they do with Citibank.

Ultimately, leading players want to take over the rest of the finance space leveraging their user base, technology and brand. Payment companies doing loans. Payroll providers starting to act like aggregators of services. Accounting solutions doing planning. Expense management platforms doing procurement.