1/ Let's talk predictions for fintech in 2021
In 2021 fintechs will need to innovate on their go-to-market strategies as much as they do on their products:
I discuss how offline is back + physical advertising 🏬 + gaming/sports partnerships 🏀🎮 & creators as distribution 👇
In 2021 fintechs will need to innovate on their go-to-market strategies as much as they do on their products:
I discuss how offline is back + physical advertising 🏬 + gaming/sports partnerships 🏀🎮 & creators as distribution 👇
2/ First here's the the link to our @a16z fintech team's post on where the big ideas we think Fintech will tackle in 2021
Now let's dive in on these go-to-market trends 🤿
a16z.com/2020/12/17/big…
Now let's dive in on these go-to-market trends 🤿
a16z.com/2020/12/17/big…
3/ In consumer fintech acquiring users has not changed in years - it's all about online paid advertising
But paid online CACs are relatively high - & it's anecdotal -but from what I've seen have continued to 📈 as incumbents + wave of 🆕 fintechs start to saturate these channels
But paid online CACs are relatively high - & it's anecdotal -but from what I've seen have continued to 📈 as incumbents + wave of 🆕 fintechs start to saturate these channels
4/ Too often I see fintechs rely on online adds to get users in the door & believe that more online spend = new high quality users
What in fact happens is the unit economics become upside down & the business doesn't work in a scalable way. CACs are eating gross margins 😋
What in fact happens is the unit economics become upside down & the business doesn't work in a scalable way. CACs are eating gross margins 😋
5/ If you're like me you are likely seeing tens of new ads for fintech products on TikTok/IG/FB - how are we supposed to pick?
And who are we supposed to trust? Who do I identify with? And does the ten second video really push me to open a new bank account? 🤔
And who are we supposed to trust? Who do I identify with? And does the ten second video really push me to open a new bank account? 🤔
6/ In my view, what paid online misses above all is this one crucial component - trust - which is so important in fintech!!
The level of trust needed to open a bank account & deposit money is so much greater than that of adopting a new social app or buying a new pair of shoes 👟
The level of trust needed to open a bank account & deposit money is so much greater than that of adopting a new social app or buying a new pair of shoes 👟
7/ And that's where new distributions models in fintech are going. Founders need to think how can my product & brand get pull from my target audience & how can I build trust with them in an authentic way?
Some of this has been happening already - but we can do more🛢🔥️
Some of this has been happening already - but we can do more🛢🔥️
8/ Referrals are now as important as ever. Fintech referrals programs figured out that giving your users incentives are better than paying FB & Google. The added bonus - you trust that friend 🤝
@RobinhoodApp's give a share get a share was new and created unprecedented momentum
@RobinhoodApp's give a share get a share was new and created unprecedented momentum
9/ And in many cases - offline is the new online
Fintechs can leverage offline communities and affinity based groups to adopt their products. Money is no longer a taboo-only subject & getting buy-in from communities and adopters is a powerful wedge that fintechs must pursue 🔁
Fintechs can leverage offline communities and affinity based groups to adopt their products. Money is no longer a taboo-only subject & getting buy-in from communities and adopters is a powerful wedge that fintechs must pursue 🔁
10/ Physical locations as a marketing play is coming back 🏦
Earlier this week @fintechjunkie was asking what would happen to bank branches in the future. Most agree - they are expensive billboards at this point
Earlier this week @fintechjunkie was asking what would happen to bank branches in the future. Most agree - they are expensive billboards at this point
https://twitter.com/fintechjunkie/status/1338598993190932487
11/ But for fintechs - no need to open branches in 100s of cities when you can own a stadium or be on jersey and get broadcasted to the world 🏟️
@SoFi Stadium with the #Rams & #Chargers + @Chime's @dallasmavs partnership are using sports & giving physical advertising a new life
@SoFi Stadium with the #Rams & #Chargers + @Chime's @dallasmavs partnership are using sports & giving physical advertising a new life
12/ @CashApp partnered with @100Thieves to create the CashApp compound bridging the finance/gaming gap
What they also have done with @animalcrossing dodo codes has been super innovative & different. The idea being connect with your users where they are
What they also have done with @animalcrossing dodo codes has been super innovative & different. The idea being connect with your users where they are
https://twitter.com/CashApp/status/1280583184397279233?s=20
13/ The newer & most interesting trend in Fintech that I believe will become so important are consumers adopting financial products from their favorite creators
This has happened in the past - you would watch TV and get a CapitalOne card because Samuel L. Jackson told you to 😁
This has happened in the past - you would watch TV and get a CapitalOne card because Samuel L. Jackson told you to 😁
14/ But in the future you're adopting a new products because @charlidamelio or @DavidDobrik is telling you to
And they won't just be telling you to. They will be building their own products with fintechs. These products will be representations of their brands & their personality
And they won't just be telling you to. They will be building their own products with fintechs. These products will be representations of their brands & their personality
15/ These won't be off-the-shelf generic products but one that allows you to interact with them in a deeper way
For example - What if @DavidDobrik could drop his new puzzle & make the payouts-outs through his own product enabled by a new fintech? 💥
100kpuzzle.com
For example - What if @DavidDobrik could drop his new puzzle & make the payouts-outs through his own product enabled by a new fintech? 💥
100kpuzzle.com
16/ You can check out some of these trends and more in our @a16z fintech newsletter (sign-up below)
And if you're building a new fintech product with some innovative go-to-market strategy I would love to chat 👋
info.a16z.com/newsletters-fi…
And if you're building a new fintech product with some innovative go-to-market strategy I would love to chat 👋
info.a16z.com/newsletters-fi…
17/ In 2021 - let's stay away from expensive online CACs and find new ways to get more consumers to hop on the Fintech 🚄 and get access to better financial products!
Consumers need and are looking for alternatives - it's our job to make sure they have a reason to adopt them!
Consumers need and are looking for alternatives - it's our job to make sure they have a reason to adopt them!
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