Affirm: the profitable growth breakthrough Wall Street missed 💳📈; Most banks will not survive the AI revolution 🤖🏦

FinTech is Eating the World, 22 May

Hey Everyone,

Good morning & happy Thursday! Today’s issue is really interesting as we’re looking into Affirm, the profitable growth breakthrough Wall Street is missing (deep dive into BNPL giant’s latest financials, unpacking the most importnat numbers, what they mean & why Affirm might be worth your time and money in 2025 & beyond), and why most banks will not survive the AI revolution (unpacking the latest report on AI in banking, what are the implications and what’s next + bonus Agentic AI Playbook for Finance and the Ultimate Beginners Guide to AI & more!). So let’s just jump straight into the good stuff 🌶️

Affirm: the profitable growth breakthrough Wall Street missed 💳📈

Following the money 💸 Buy Now, Pay Later (BNPL) pioneer Affirm AFRM 0.00%↑ recently posted its third fiscal quarter 2025 results that exemplify a sophisticated capital allocation strategy that prioritizes sustainable competitive advantages over short-term profitability optimization.

While the company's emphasis on 0% APR products has created temporary margin headwinds, this strategic positioning is driving superior customer acquisition economics, enhanced merchant relationships, and defensive market positioning that should generate substantial long-term value creation.

The market's short-sighted focus on quarterly guidance misses the fundamental transformation occurring within Affirm's business model.

So let’s take a deep dive into FinTech giant’s 3Q 2025 financials, unpack the most important numbers, understand what they mean, and see why Affirm could be worth your time and money in 2025 and beyond.