Is the fintech business model sustainabile?

Goldman Sachs / Other VP🥺TC😭
Jan 5 9 Comments

Financial products gain value over a long term steady growth trajectory.
Tech startups move toward fast scalability and short term returns for investors.
These two principles seem contradictory.

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TOP 9 Comments
  • New mdGG61
    The taxi cab industry moves on a long term steady growth trajectory.
    Tech startups move toward fast scalability and short term returns for investors.
    These two principles seem contradictory.
    Jan 5 5
    • Goldman Sachs / Other VP🥺TC😭
      OP
      Financial products don’t work like that. Value in gained over long term timelines.
      Jan 5
    • New mdGG61
      There's absolutely nothing preventing companies from turning a profit selling financial products in a transactional way.
      Jan 5
    • New mdGG61
      Also banks are hugely inneficient. All those useless branches, all those useless personal bankers and cashiers cost a lot of money. Without that overhead you can spend money on CAC and still turn a profit.
      Jan 5
    • Goldman Sachs / Other VP🥺TC😭
      OP
      I agree overhead and old infrastructure is extremely costly to traditional institutions.
      Jan 5
    • New mdGG61
      Marcus has a much brighter future than Chase! :)
      Jan 5
  • Apple Snut Ella
    Fin tech isn’t about growing assets. It’s about trading.
    Jan 5 0
  • OpenTable Meliodas
    Fin tech is about capturing short term rent, not long term growth.
    Jan 5 0
  • Facebook Whateverrs
    Many, but not all financial products gain value over a long term steady growth trajectory. Even if we did assume that was the only purpose of any financial product, what's that have to do with a fintech company's business model?

    Do any of the fintech firms you're thinking of have a business model of "aquire financial products and wait for them to grow?"

    Fee revenue is certainly scalable. Wealthfront/betterment charge fees for investing client assets. What business model are you thinking of where your concern would be relevant?
    Jan 5 0

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