4 ms·
I am not sure what the current state of fintech is but it is fairly obvious to observe that there is a ton of cost in the industry that probably doesn't need to
by hogFeast 7y ago
I am not sure what the current state of fintech is but it is fairly obvious to observe that there is a ton of cost in the industry that probably doesn't need to exist anymore (and btw, we aren't even in the first innings of this).
This has happened before: for example, insurance used to be sold in-person, then over the phone, now online. And that is innovation. Selling it in-person was very expensive.
But it is also true that none of the companies mentioned in the OP have really innovated anything. The innovation was finding a new way to justify massive volume growth that would later turn out to be unprofitable. This happens every cycle.
The distribution method wasn't really novel either afaik. Maybe having an app makes your product a bit cheaper but it isn't really going to be a massive difference to selling over the phone. In particular, with high-interest loans analysing credit quality is probably going to be more important. But idk (I have looked at these businesses and it isn't something I would ever get involved with: high-interest, P2P, all scams).
- tempsy 7y agoI can call Chase/Amex/Etc and have someone pick up in seconds or minutes. I have signed up for some neobank accounts out of curiosity and there’s no phone number just email and chat, and when I’ve asked a question it’s taken at least 2-3 days to get a reply on average. Reducing cost might be good for the business but as a customer I get no additional benefit (my Chase account is free) and reduced quality of service. Why would I want that?
- tatoalo 7y agoI had the opposite experience, I needed a refund on a purchase. Revolut was immediately on the case and issued a refund (in BTC, moreover) in less than 48 hours including the time required to check what I was arguing about. And with the support chat I never really had issues thus far, with neither Revolut or N26. Similar situation with UniCredit (of the largest banks in Italy) and it took me ages, was really close to give up. On top of that, their email support is pretty trash...
- tempsy 7y agoBig American banks have decent customer service IMO. I’ve had particularly good experiences with Chase, Amex, and Capital One. And those ones have invested heavily in their IT/digital experience. Might not be true elsewhere, in which case the case for a neobank is probably stronger. Also I signed up for Revolut in the US and not sure why it’s better from a fee perspective. It charges a percentage fee for ATM withdrawals which I’ve never seen before and frankly insane.