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What does this mean: "IMHO Spotify and Instagram are not verticalized." I don't think every app becomes a vertical neobank. I think apps that already have a mo
by kunle 7y ago
What does this mean:
"IMHO Spotify and Instagram are not verticalized."
I don't think every app becomes a vertical neobank. I think apps that already have a moneymoving financial relationship with some niche, have a real opportunity to serve that niche very well. Specifically - if you're a material source of income for some niche, or if you're a source of growth for some niche, then you have a real shot at the vertical neobank strategy.
- sandGorgon 7y agoI mean instagram and Spotify have too broad a base. You wrote this - You can think of a vertical neobank as a checking account + debit card product, focused on a specific customer segment (rather than focused on a broad swath of “consumers”) I'm wondering if that holds for Instagram as a vertical neobank. But I like your current statement "I think apps that already have a moneymoving financial relationship with some niche, have a real opportunity to serve that niche very well." . So then do you think Instagram will be a successful fintech ? And I'm wondering why Intuit could not become a neobank without acquiring CreditKarma?
- kunle 7y agoGot it. For Instagram; they have creators (who create content, make filters etc) who already get paid by Instagram when that content is sold. No idea how large that business is, but it's a case where instagram is impacting the moneyflow. They would definitely not be a vertical neobank for consumers. Way too broad. For Spotify - they are in the money flow for artists. The vertical neobank would be for those artists getting paid.