The Other 50 Podcast: all roads must lead to profitability
In the latest episode of The Other 50 podcast, Theo Lau and Brad Leimer chat with FinTech Futures‘ Tanya Andreasyan about the state of challenger banks and fintech funding, and what the future holds.
Digital-only banks have been gaining popularity in recent years, especially in developing economies that previously lack formal financial services infrastructure.
Apps such as M-Pesa in Africa, Alipay and Tencent pay in China, and Nubank in Latin America provide their consumers with a convenient and cost effective means of banking via mobile phones.
The established economies of Europe and North America are also witnessing a rapid rise in challenger banking app numbers, with the UK alone having over 200 challenger banks and banking services, according to the FinTech Futures guide.
Even fintech start-ups that previously offered investment services only are rushing to add banking to their portfolio.
But the crucial question remains: how sustainable are their business models? Most of these start-ups have yet to turn a profit and are largely dependent on massive venture capital.
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