This week, we look at Betterment launching a bank account and payments feature. They are not the first, but they could be the best! Still, it feels like the world has moved on. Barriers to entry around digital finance have collapsed, and shifted industry goal posts. Hundreds of companies are integrating API-based solutions that connect to banking and investment entities. Amazon, Google, and Apple are there already. And let's not forget the incredible pressure from the COVID recession: 20MM+ unemployed, $100 billion decrease in global remittances, 1 in 8 banks being unprofitable. Is it time for incremental improvement, or a sea change?
Today we're joined by Brett King, founder and executive chairman of Moven, one of the world's original digital banks, and Lex Sokolin, global head of fintech at ConsenSys. Lex and I discussed Moven's recent announcement to shutter its B2C business on episode 170 of Rebank. And we're happy to have the opportunity to connect with Brett directly to discuss the decision in more detail.
This week, we put on the Goldman hat and go shopping for companies. We buy a little bit of Folio and sell some Motif. We look at Personal Capital and the $1 billion it wants for its $12 billion of assets. We examine the private markets with Addepar / iCapital and SharesPost / Forge, and then move over to the banking sector. Should we buy Wells Fargo, as rumored, or some digital wallet apps? Read on for how to acquire a best-in-class Fintech.
Welcome back to the Fintech Blueprint / Rebank podcast series hosted by Will Beeson and Lex Sokolin. In this episode, we talk through a few recent events that are indicative of the Fintech world right now. Brex raised an additional $150 million at a slightly improved valuation vs. its last round just as Monzo is reportedly looking at a 40% down round. Why? Shopify launched bank accounts for its merchants and announced the Shop app, basically an Amazon competitor plus Klarna, just as it worked with Facebook to support the launch of Facebook Shops and joined the Libra Association. Lots going on. Lastly, we discuss why Goldman’s M&A activity over the past couple years leads to the natural conclusion that they should buy Schwab.
Welcome back to the Fintech Blueprint / Rebank podcast series hosted by Will Beeson and Lex Sokolin. Max Friedrich is a fintech analyst a ARK Invest, a public markets investment manager focused on disruptive technologies including autonomous tech, robotics, fintech, genomics and next generation internet. Max recently published a report on digital wallets, including Venmo and Square’s Cash App, which is available for download on ARK’s website. In this conversation, we explain why Cash App has seen exponential growth.
Today, we talk through a few recent events that are indicative of what’s important in fintech right now.
Varo raised $241 million in preparation to start operating under its own banking license later this year. Is a banking license an asset or a liability if you’re a digital bank?
Marqeta is reportedly now valued at $4.3 billion, as banking-as-a-service continues its mature.
And LA-based fintech Stackin’ raised $13 million to scale its messaging-based offering designed to help Gen Z find the right fintech. What should we make of this?
Oliver Hughes is the CEO of Tinkoff Group, one of the world’s most successful digital banking groups with over 10 million customers. This is one our most interesting conversation to date, full of fantastic operating advice.
Tinkoff is publicly listed with a $3.8 billion market capitalization, which brings clarity to its operating model in a time when many noteworthy consumer digital banks are pursuing customer acquisition at the expense of profitability.
Oliver has led Tinkoff through three financial crises, and brings experience and perspective to the current COVID crisis. This is a fascinating discussion about unit economics in digital banking and winning business models with a CEO with thirteen years of experience in this space.
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·Mike Cagney is the Co-Founder and CEO of Figure, a full stack financial services blockchain company with consumer offerings in market or on the way in lending, banking and more. In late-2019, Figure raised $103 million at a $1.2 billion valuation and continues to grow.
Prior to starting Figure, Mike co-founded and ran SoFi, one of the most successful consumer fintech companies ever.
In this conversation, we discuss Figure’s routes to asset origination and capital markets disruption, Figure’s previously unannounced consumer banking and payments offering, lessons learned building and scaling multiple billion dollar companies and more.
The tech companies will become the storefront to absolutely everything.
There is no Internet, there is only Google.
There is no commerce, there is only Amazon.
There is no finance, there is only WeChat / Tencent?
I don't know about you, but I cannot pay for anything in cash in London anymore. COVID has made the city go cashless. For China, QR codes have long replaced the need for paper money. And if there is no cash, what is the point of ATMs, and ATM fees, and bank branches, and bank branch staff? Financial firms no longer need to be the place where you shop for financial product.
In this conversation, we break down recently published annual reports from Revolut, Starling and Monzo, three of the leading European digital banks. There are some fascinating insights to be drawn from the documents, especially in the context of the broader global fintech market. This is rich subject matter, and we surely didn’t cover everything.