Genevieve Roch-Decter, CFA Profile picture
Apr 2, 2021 21 tweets 7 min read Read on X
Eight years ago, I told an OLD portfolio manager that FinTech would CRUSH banks.

He told me that banks have infinite capital, and will buy any FinTech they see as a threat.

Turns out, we were both right.

Time for a thread 👇👇👇
Bank stocks went up +140%, they strategically acquired many FinTech competitors and even incubated their own technology.

BUT...

Quietly, the FinTech industry was CHIPPING AWAY. Gradually, then suddenly, this happened…
They took a +30% bite of the finance pie. And the size of that bite is growing at an accelerating pace.

“Technological change is always slower than we think. BUT it’s always more profound than we could have ever imagined.”
This week, let’s breakdown DIGITAL WALLETS in 1 MIN!

1.DIGITAL WALLETS 👉 What are they?
2.COMPETITIVE LANDSCAPE 👉 How will banks compete?
3.FUTURE 👉 One wallet to rule them all!

Let’s get started!
1.1/ DIGITAL WALLETS 👉 What are they?

Digital wallets are a digital version of your physical wallet.

It allows you to pay for things, usually through a mobile phone app, and even stores gift cards, tickets and more.
1.2/ Why have they become so popular?

Because we’ve been spoiled by ONLINE SHOPPING and SOCIAL MEDIA.

We are now demanding the same user experience from our financial services.
1.3/ How did they start?

Back in the late 90s, we started sending money on the internet - the birth of Digital Payments.

Let’s take a quick peek back — it didn’t happen overnight!
1.4/ VENMO & CASH APP

Square’s Cash App & PayPal’s Venmo are the two most POPULAR consumer digital wallets in the U.S.

Before we get into a comparison of the two, let’s look at the competitive landscape and how banks are going to compete.
2.1/ COMPETITIVE LANDSCAPE

The global digital wallet market is now a >$1 TRILLION sector.

To put that in perspective, it’s basically equivalent to the Top 10 largest banks in the US.
2.2/ How will banks compete?

The digital wallet sector is expected to grow at nearly 30% a year to reach over $7 trillion by 2027.

It’s going to be hard and expensive for banks to compete.
2.3/ BANK STRATEGY

In a nutshell, banks are using old & tired ways of landing customers.

“Advertising and promotion, postage, stationery and supplies”
2.4/ DIGITAL WALLET STRATEGY

Digital Wallet companies are using edgy social media marketing & influencers as well as unique “branded” identifiers.

This pulls in new customers cheaply.
2.5/ BANKS vs. DIGITAL

These tactics are working so well the numbers speak for themselves.

The customer acquisition cost for Digital Wallets is $20 versus Banks at $925!
3/ CASH APP vs. VENMO

Even though CASH APP is bigger and has more growth, I won't be buying it YET.

See WHY (and a full analysis) below!
gritcapital.substack.com/welcome
4.1/ Future: One Digital Wallet to Rule them All!

I imagine a future where holding, sending, realizing & borrowing value whether in the form of fiat, crypto, NFT’s, stocks, real estate etc...

is possible from ONE digital wallet.
4.2/ THE FUTURE

A push of a button would enable powerful transactions like these:

- SEND stocks or crypto as gifts to my friends’ kids for Christmas
- INVEST in new start-ups in real-time after falling in love with their product
4.3/ THE FUTURE

- TRADE those points to pay for anything from AirBnB rental to buying Stocks
- BUY/SELL a house instantaneously
- BORROW from my home equity to invest in stocks
4.4/ THE FUTURE

- LIST & SELL content I have created instantly via NFT (Non-Fungible Tokens)
- DONATE to charity using any method in my wallet

All settlements and accounting would be built in. No fuss or headaches at tax time!
4.5/ TIMELINE

To make this all possible you would have to API all the different platforms (brokerage, bank, crypto, lending etc) into one platform.

The world when we have ONE DIGITAL WALLET TO RULE THEM ALL👇
5/ GRIT NEWSLETTER

Every week I write a newsletter to ~20k investors including hedge funds, pension funds, investment advisors & billionaires.

SUBSCRIBE to see how we’re playing this! 👇

gritcapital.substack.com/welcome
6/ YOUTUBE

SUBSCRIBE to my YouTube channel for more insights! 👇

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Genevieve Roch-Decter, CFA

Genevieve Roch-Decter, CFA Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @GRDecter

Aug 8
LAST WEEK JEROME POWELL SAID DOWNSIDE RISK TO EMPLOYMENT ARE “REAL NOW”

WITH THE U.S IN A RECESSION ACCORDING TO SAHM RULE...

TIME FOR A 🧵
1/UNEMPLOYMENT RISING:

Up 4 straight months, now at 3-year high of 4.3% Image
2/JOB OPENINGS DECLINE:

As the economy bounced back from COVID, employers scrambled to hire enough workers.

But that’s flipped fast:

- March 2022: 2 job openings per unemployed worker
- Today: Just 1 Image
Read 11 tweets
Aug 4
I've been investing in the stock market for 18 years.

Here are 10 things I do when there's a correction and I feel like dumping my entire portfolio...

Time for a 🧵
1. Drink a Cherry Coke and ask myself WWWBD: What Would Warren Buffett Do?
2. Look at charts upside down
Read 11 tweets
Dec 19, 2023
📈EVERY Major "2024 Outlook" from the World's Top Banks, Asset Managers, Private Equity & Consulting Firms

Credit and thank you to Anthony Cheung for posting on Linkedin.

Let's dive in!

BANKS (US):

J.P. Morgan

J.P. Morgan Private Bank

Goldman Sachs

Goldman Sachs Asset Management

Morgan Stanley

Bank of America

Bank of America Private Bank

Citi

Wells Fargo

BNY Mellon

State Street

Lazard

T. Rowe Price.

TD Securities

Charles Schwab

RBC Capital Markets shorturl.at/eltPT
shorturl.at/eyzHK
shorturl.at/gqLX2
shorturl.at/mCSW1
shorturl.at/jlmzA
shorturl.at/iuxyF
shorturl.at/ajsv7
shorturl.at/puW07
t.ly/2bF1E
t.ly/BCLLT
t.ly/p47tE
t.ly/ZkkUm
t.ly/e9b3d
rb.gy/nnjx81
rb.gy/lzcgh4
rb.gy/0guz6uImage
ASSET MANAGERS:

BlackRock

Amundi

M&G plc

Man Group

Wellington Management

Invesco US

Legal & General Investment Management (LGIM)

Schroders

Deutsche Bank (Wealth)

Allianz

AXA IM

PIMCO

Capital Group

Julius Baer (secular outlook)

Pictet

Vanguard

Fidelity

Cambridge Associates lnkd.in/eSxDA_bR
lnkd.in/ei6QXd7n
lnkd.in/e_PaFDwR
lnkd.in/edXtr7NP
lnkd.in/exnzD8_E
lnkd.in/egzQrPAu
lnkd.in/e7hjAkx6
lnkd.in/ewiRsg-t
lnkd.in/efw_cwRd
lnkd.in/ehuSey7i
lnkd.in/e4iDZ9_M
lnkd.in/eKA7hdBB
lnkd.in/ehH2jW3a
lnkd.in/eaN5EfJV
lnkd.in/eziFnGU8
lnkd.in/e8Fnrs2C
lnkd.in/eB6tJZb4
lnkd.in/eTHqAe4w
PRIVATE EQUITY:

KKR

Apollo Global Management

Blackstone

BlackRock (Private Markets) lnkd.in/e_m6UE5F
lnkd.in/eCHMuRvV
lnkd.in/edyFqR63
lnkd.in/eiGcGCfy
Read 6 tweets
Nov 7, 2023
Buffett, Ackman, Dalio, Cohen, Griffin...

BULL or BEAR?

What are the world’s wealthiest investors doing with their money right now?

Let's find out👇 Image
1. Ray Dalio: MILD BEAR.

“I don’t want to own debt, you know, bonds and those kinds of things…Temporarily right now, cash I think is good.” Image
2. Steve Cohen: BULL.

Says the US economy may fall into a short-lived recession this year before rebounding in the first quarter of next year.

He expects economic growth to jump next year and equity markets to rally 3% to 5%. Image
Read 12 tweets
Sep 12, 2023
“We’ve been spending money like drunken sailors”

JPMorgan CEO at Barclay's conference in NYC.

5 things you need to know 👇 Image
1. Quantitative Tightening is Coming.

"I just think people make a mistake to look at real-time numbers and not look at the future. And the future has quantitative tightening,"
2. Consumer is not alright.

“To say the consumer is strong today, meaning you got to have a booming environment for years is a huge mistake,"
Read 7 tweets
Jul 26, 2023
The Fed just raised rates by 0.25% - again

That’s the 11th rate increase in less than 2 years

Here’s what you should know 👇
The Federal Open Market Committee made a move that was expected by financial markets:

They raised the funds rate by a quarter percentage point.
The new target range now stands at 5.25%-5.5%, with the midpoint reaching levels unseen since early 2001.

The Fed Funds Rate was never this high in the years leading up to the 2008 Financial Crisis.

Read 11 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us!

:(