The Other 50: All roads must lead to Profitability

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
Kenya), Alipay and Tencent pay (in China), and Nubank (in Brazil,
Argentina, and Mexico) provide their consumers with a
convenient and cost effective means of banking via mobile phones.
Even fintech startups that previously offered investment services
only are rushing to add banking to their portfolio. Despite the
popularity, however, one crucial question remains: How
sustainable are their business models? Most of these startups
have yet to turn a profit and are largely dependent on massive
venture capital. 


In this week’s “The Other 50” podcast, Theo and Brad chat with
Tanya Andreasyan, MD and Editor-in-Chief of FinTech Futures,
where they talked about the state of challenger banks and fintech
funding, and what the future holds.


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