The Progressive Arc of Fintech

A few takeaways are from a session today with ODFintech1.

We need to recognize that most everything is better delivered through software. No one wants to go into a StateFarm shop and ask about insurance. Walking into a Fidelity Investments personal investor location to deposit money and speak to an advisor is not where the puck is moving towards.

Most all business models are not simply net new, and are created to remove share from incumbents.

Currently everything is centralized. This will be moving to decentralized. DeFi is taking shape and is in its early days. DeFi is the radical take and the value creation happens quickly.

Consumers are starting to make beyond rational decisions based on brand attributes.

You should ask yourself, “if a rational person was provided with complete information, would they choose your product?” Or perhaps, “of the products you offer, are most world class?” For example on the below slide, large institutions deliver a large number of offers. But it’s likely not all or most are below or just average.

Screenshot of QED’s Copernicus Deck
Screenshot of QED’s Copernicus Deck

Even though this deck is a few years old, the findings and opinions are still relevant.

With all of this said, a lot of people call large organizations slow and stupid. There’s no debating that they are slow, but not stupid. Large companies have some of the smartest people in the industry, and there is likely deep reason as to why particular decisions are made.

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