1) People hating banks is old news. It’s more interesting to look at root causes for the inertia. And more importantly, why is the centuries-old banking industry changing so suddenly? New post: Why our most hated institutions will become our most beloved bit.ly/37AGvpU
2) What's unique about this disruption is that, rather than a single winner and many losers, all players stand to benefit. Incumbents will improve, it'll become faster to launch startups, and new brands that have nothing to do with financial services could become your bank!
3) This rapid change is being powered by new infrastructure companies. In stark contrast to the traditionally cumbersome, years-long process of partnering with legacy tech, these new fintech companies provide modern APIs as financial services building blocks.
4) Entrepreneurs from diverse backgrounds are better equipped to build products that meet a more diverse set of customer needs. Who better to build fintech for the 40+ million people on the Electronic Benefit Transfer program, for example, than a team that grew up on the program?
5) Exponentially better products serving a customer base with very few (or very expensive) existing options, are likely to be adopted faster (eg spread by referral) & have higher retention. The lower customer acquisition cost becomes a competitive advantage.
6) It shouldn’t be expensive to be poor. When fintech enables more people to plug into better financial services and participate in the economy, everyone wins.
