Re-bundling catch up behind in Europe despite the business need & the customer push

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Revolut is leading the re-bundling race amongst the European originated Fintechs.

As technology commoditizes products and services at ever increasing rate, re-bundling

catch up is the name of the game for grown up and well-funded Fintechs.

In the US market which has more unicorns and later stage Dintechs, this is more prevalent.

SoFi first comes to mind, which started with a laser focus on refinancing student loans (a large sector in the US market), then offered personal loans and mortgages; and then grew a wealth management offering that includes, equity investing, issuing ETFs, crypto investing; and a sizable Money offering with a debit card, a credit card, a checking account, savings accounts; and partnerships with brands like Mastercard, Samsung, Lyft, etc.

Wealthfront, one of the two standalone `robo-advisors`, that as early entrants and purists have advanced and impacted the entire digital investing space; has added direct deposits, saving accounts, prepaid and debit cards, personal loans and mortgages.

In addition to the business need to monetize pushing towards rebundling, there is also a consumer push towards convenience. The latter means that customers in the attention economy want to be served seamlessly anywhere and in a personalized way. SuperApps are the natives in the East and their approach has been strongly validated during the recent crisis. The West is on its own journey that is broadly speaking which varies by region and is shaped by regulations and culture — see Open Banking, PSD2, ect.

Even though Europe is ahead on the progressive regulatory front, the rebundling is broader and deeper in the US. I already mentioned SoFi and Wealthfront, but there are other grown up fintechs that are sreiousloy re-bundling especially from the payments sector. For example, Square`s Cash App and Venmo both with small business Saas offerings and now with debit and or credit cards and crypto investing.

Maximilian Friedrich, analyst at Ark Invest shared a US centric snapshot of the re-bundling trend

In Europe, the first Big name that comes to mind as example out of Europe is Revolut and then Transferwise. Both native exchange money transfer disruptors originally who have grown geographically, and now have debit and credit cards. Clearly Revolut is the most aggressive rebundler originating out of Europe, as they have added crypto investing, commodity investing (gold and silver for now), low cost stock trading, the micro-savings Vault offering, and insurance. Not to mention their plan to apply for a UK banking license.

Transferwise claims that they are not going to go after a banking license however, they are integrating investment features over the next year.

I can’t think of a Wealthfront rebundling example in Europe, except for Scalable Capital. From a pure investing player (B2C and B2B) Scalable Capital is now offering fixed term deposits through Raisin. It is also stepping into the brokerage business with a free trading service in Germany through a partnership with electronic trading platform Gettex which belongs to the Munich Stock exchange.

German investors for the first time can invest with ZERO commissions in any ETF and have an ETF savings free account.

Zopa the p2p UK lender is an example of rebundling that originates from the lending space. Even their branding has changed to FeelGood Money as they have added savings accounts and credit cards and their motto is about simple loans & investments. And the Zopa family now counts a UK licensed Bank, the Zopa Bank.

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№1 Finance Global Woman Influencer by Refinitiv 2020 & 2019. Fintech & Blockchain Advisor: 30yrs FINANCE; #fintech #blockchain

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