Note from the CEO: Aw, the cute hot bank girl doesn’t want or need that disruptive bad boy fintech startup anymore? It seems that the large banks have caught on (and caught up with…..almost) the new technology introduced to them by the startups. They dated for a while, some partnered up and got ‘hitched’ (smart) and now settled down and…….yawn. Honeymoon is over. Gee, and after Wells open all those new accounts to impress the ‘dating pool’ too.
“Young fintech companies are facing a harsh new reality. After years of unbounded growth fueled by billions in venture capital, the market dynamics that made it all possible have changed.
Two trends underscore this market recalibration. First, new fintech investments are tapering off as the broader funding market cools. Second, we’re seeing banks, once flummoxed, finally starting to get the hang of digital innovation.
To survive the down market will require upstarts to take a long, hard look at their business models and make key investments in these three areas: regulatory compliance, bank partnerships and excellent customer experiences.”