A new wave of fintech infrastructure companies will solve “undifferentiated heavy lifting” problems, allowing fintechs to focus on what actually makes them special.| notes.mtb.xyz
Fintech startups must grow fast but manage risk. Most fintechs get good enough it by limiting the downside of risk, but cap their upside in doing so. However, the best fintechs find ways to turn that risk into core IP and leverage for the business.| notes.mtb.xyz
TLDR Changes in technology lead to new business models (e.g., browser → SaaS → AWS → freemium).| notes.mtb.xyz
The next big fintechs will win with novel distribution, not novel products. In the 2010s the biggest fintechs were product innovators. They closed the gap between the poor UX of traditional financial institutions and the great UX of digital-first products. They combined new tech, regulatory frameworks, and business models to create genuinely novel products: Chime’s branchless bank, Robinhood’s fun fee-free trading, innovative consumer credit products like Earnin’s earned-wage-access or ...| notes.mtb.xyz