, 14 tweets, 7 min read Read on Twitter
Here's a thread on banks becoming tech companies, vice versa and a few other permutations. #fintech #APIs #Banks
If banks start thinking of their C&I groups as B2B tech providers - including to their own retail/consumer banking units, the business case is there. They provide the tech infrastructure (via APIs) to companies creating great consumer experiences
The banking unit keeps earning their 8% interest on deposits as their internal revenue recognition figure but the product, service and deliver models change.
An example of this is @Finserve_Africa which essentially has become Equity's Tech arm. I'm talking about this in a few hours with @CFI_Accion
Here's what Jenga's APIs looks like
And how they (should) think about the different banking units becoming a tech company
And I don't totally agree with @EmekaOkoye saying they lending/payments/banks haven't been disrupted yet. There might just be a big enough pie that lending companies like Branch and Tala haven't needed to steal all the bank customers (yet). This is a bad sign for banks
The mobile money networks have essentially proven there's a biz case for banks becoming tech companies. Banks still hold the escrow accounts (in most places) and earn interest off the escrow, but the telcos/DFSPs run the consumer experience. This greatly expanded the pie.
Other payment companies like @GooglePayIndia, @NALAmoney in Tanzania, @WechatPay are starting to do the same thing with MUCH better consumer experiences. The big players like @WechatPay and @AntFinancial are buying/becoming banks. Smaller players will partner with banks
@gojektech started as ride sharing, they built out a distribution network and trust, and then started doing cash-in, cash-out for banks. They're a mobile, bank agnostic, agent-banking network. They will become a bank (if regulation permits) because 8% on deposits is a lot of $$
On a smaller scale, @SafeBoda, a Ugandan-born ride-hailing company, recently hired a "Director of FinTech". The implications of that should be clear. @PathaoBD @GozemAfrica are doing the same.
In the US, @SVB_Financial bought @StandardAPI to offer API banking to tech companies and they've done really well with this model. This is coming. Everywhere. I just think it's a matter of when and who builds it.
Missing some Tweet in this thread?
You can try to force a refresh.

Like this thread? Get email updates or save it to PDF!

Subscribe to Dan Kleinbaum
Profile picture

Get real-time email alerts when new unrolls are available from this author!

This content may be removed anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!