What are 4 Big Ideas that Fintech Will Tackle in 2021
The a16z fintech team weighs in – Read more about the top trends and what is driving them
#1 Disintermediating the banking system
> Banks usually serve as intermediaries between the consumer and the government.
> Fintech, the article states, allows governments to remove intermediate bureaucracy and make monetary services available directly to the citizens
> With >5B of folks today having mobile internet connectivity, “every consumer eventually will access their savings, loans, and investments via a mobile app”
#2 Adding insurance to the financial services
> Every company will be a fintech company” – Consumer and B2B companies have seen the opportunity to add fintech (payments, lending..) to drive revenue. Now, can companies add services such as insurance to that?
> Historically asset and insurance purchase have been de-coupled (car, insurance)
> Can we embed insurance at the point of purchase?
#3 Emergence of ‘Social+’ fintech products
> Start-up success is attributed to two things – product and distribution insight ( what the core USP offers and how well it is distributed)
> New fintech products focus on leveraging ‘network effects’ – more utility when used with others – thereby driving incentive to drive distribution
> “Multiplayer products have built-in growth levers, they make activity around money — investing, financial planning, even saving — more engaging and fun!”
#4 Emerging new asset classes
> Imagine a small investor owning a classic painting? Is that even an investment you have considered? What if it is made available through a ‘fractionalized ownership’ model?
What other trends have you noticed in the Fintech space post COVID?
Here is the A16z detailed report on the topic : https://a16z.com/2020/12/17/big-ideas-for-fintech-2021/
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