Last Week in Lending: Tuesday, 18 June 2024

It’s such a privilege to be right here, right now - at what might be the moment of fintech becoming mainstream. As you would expect, we now regularly see headlines demonstrating real growing pains - ranging from euphoria to doom-and-gloom.

1. An encouraging outlook portrayed by the neobank capital cycle

The neobank industry, having endured the challenges of a zero-interest-rate environment, is now poised for significant growth. Top players like Mercury, Monzo and Revolut are thriving, showing impressive revenue growth and profitability. Neobanks are diversifying their offerings, creating financial super apps, and expanding into new markets through strategic partnerships.

I think this is an encouraging sign for fintechs. The resilience and innovation demonstrated by leading neobanks suggest a promising future - even if negative headlines might often portray a quite different picture.

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2. Mercury CEO on what it took to build and scale a leading fintech

In a recent podcast interview on Fintech Brain Food, Immad Akhund, CEO of Mercury, shares invaluable insights on the art of building and scaling fintech businesses. Akhund emphasizes the importance of focusing on product to create a seamless user experience and building on a platform strategy.

What I love about this approach is how it aligns product innovation with the go-to-market strategy, ensuring that the core offering remains central to the company's growth - and as a bonus enhances unit economics as well.

Check out the full podcast below ??

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3. FDIC warning amplifies the need to add trust-building to your todo list as a fintech

In the June edition of the FDIC’s Consumer News they shared warning words about using third-party apps - read: fintechs. While it’s great to see them be proactive, similar to the regular articles published by the CFPB, it might also cause more fear and doubt for consumers that consider neobanks or other fintech services. I fully see their point, given the current Synapse collapse and how it’s affecting consumers of connected fintech apps.

I think the take-away is that today, more than ever, it’s mission critical for fintech brands to earn your reputation & trust by doing the right thing to protect your customers and being transparent about it.

Check out the full article below ??

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