CategoryFintech

Credit for a new business paradigm: Revenue Based Financing

C

Alternative lenders are generally considered a low interest rate phenomenon: when interest rates are low, money is cheap, so alternative lenders can compete with banks because their cost of capital is comparable to the cost of capital of banks. Then, when the interest rates regime changes, things get much tougher: cost of capital for alternative lenders rises and it becomes increasingly difficult...

It’s all about liquidity

I

While its importance is often underestimated even by practitioners, liquidity – i.e. the ease of converting an asset into cash – is one of the most important concepts in finance.  From my point of view, liquidity and, in particular, the ability to bootstrap and guarantee a qualitatively better liquidity is the most appealing characteristic of the blockchain-based markets. The...

Network effects in fintech

N

Network effects is, with no doubt, the biggest force behind outlandish successes in the tech space. The goal of this post is to dig deeper into the role networks effects play in fintech to provide a sustained competitive advantage.

The rise of lifestyle banking

T

Before smartphones, the corporeal world had a much more relevant role in building solutions to essentially any human problem. Physical constraints strongly influenced the ideation and implementation of these processes. This was obviously reflected also in the banking space.  Originally, the banking industry solved the problems of storing money, delivering payments and acquiring liquidity, in...

The Amazonization of retail payments

T

The phenomenon of “Amazonization” refers to the wholesale disruption occurring across retail and eCommerce thanks to the leviathan-like presence of Amazon.com. Considering the platform shift happening in the retail payment space, I believe the same phenomenon of ‘Amazonization’ that happened to eCommerce will eventually happen to the retail Payments space.  In this post you will find an...

A neobank stack

A

Over the last few years I’ve spent a lot of time building lending and banking stacks. What used to require vast resources only 10 years ago, is today a much simpler and more inexpensive job, thanks to the enormous number of financial infrastructure businesses born in the last decade. The goals of the following 2 posts are: to highlight which are the key functional components of these stacks, to...