The key reason why every FinTech is becoming a bank 🏦; M&A deal-making in crypto has hit winter mode, with more cold to come 🥶; The SEC just saved Robinhood from getting eaten alive 🤯
FinTech is Eating the World, 23 September
TGIF! I couldn’t wish for a better issue to end an awesome week - it’s like icing on a delicious cake 🍰 Today we’re looking at the key reason why every FinTech is becoming a bank (& why some can’t win without it); the M&A deal-making in crypto that has hit winter mode (more to come & why you should watch FTX), and The SEC that just saved Robinhood from getting eaten alive (& why it’s not enough + a bonus read about the fragility of the brand). Let’s jump straight into the good stuff:
The key reason why every FinTech is becoming a bank 🏦
Throwback ⏮ Couple of days ago I made a post on LinkedIn that resonated very well within the FinTech and broader finance community. I now want to expand on it a bit.
Backing it up 👉 Varo, Starling Bank, Monzo, Revolut, N26, Klarna, Adyen, Square (now Block), etc. have all started as FinTechs or neobanks trying to disrupt the legacy banking system, but now have banking licenses too and/or operate as regular banks.
Zooming out, we can clearly see the trend that more and more neobanks and FinTechs in general are leaning on a banking license. In fact, as it is put above, I would argue that every FinTech founder dreams of a banking license. Why? One word: trust.
But can you buy trust? Here’s the takeaway + some examples of how different digital players are building trust aka pursuing a banking license: