The Future of Fintech - Exploring Valuations and Revenue Model Challenges

The video effectively catches the audience's attention by mentioning meeting customer needs, delivering better services, and the surge in online transactions. It provides a compelling starting point.
You know when you think about meeting customers where they are delivering banking services more cheaply and efficiently there's really a lot of opportunities to get better services to people and for much cheaper And so that combined with COVID a surge in online transactions people not wanting to go to a bank in person really created a lot of tailwinds behind Fintech and a ton of interest in investing There are a bunch of companies getting attention during the past few years Stripe is a big one They're a payments giant who makes payments a lot easier and they were valued at $95 billion in 2021 We do similar things as well with other parts of the problem Chime is a digital bank that was valued at $25 billion Buy Now Pay Later was a really big category So companies like Affirm and Klarna got a ton of attention really high valuations During COVID especially there was a view that this was going to change banking completely and they spent a ton of money on marketing to bring in a lot of users But the valuations that they were getting end up not being justifiable when you look at the revenue they're bringing in And so real innovation here really valuable service but the business models haven't been as productive and bringing in enough revenue to support the valuations that they really received.