Big banks, please stop trying to be fintechs

Dear big banks,

We need to talk.

But being a fintech just isn’t in the cards.

It’s like when the hedge funds tried to be VCs in 2022. It just doesn’t work.

How many times do we have to go down this road with you guys? You’ve struggled to create your own “startups” internally. And acquiring fintechs you don’t plan on changing usually doesn’t end well either.

It’s a tale as old as time. Big bank acquires startup but promises it autonomy. Big bank then makes XYZ changes to startup to make sure it is a good “fit” within the organization. Startup no longer looks anything like what big bank originally acquired.

And before you even try to say it, no. It’s not them. It’s you.

You’re fundamentally not a fintech. There’s the red tape and regulations. There’s the comp and making technologists feel like second-class citizens. There’s the in-office mandates. There’s the work that isn’t exciting. We’ve been over all this before.

Look, things aren’t even that good on that side of the grass. Have you seen fintech valuations? It’s rough out there. Do you really want to play that game?

Which gets me to why I wanted to talk to you. A lot of these fintechs are going to be looking for homes soon enough. Funding has dried up. Cash isn’t cheap. And the public markets, don’t even get me started on it. (I don’t want the VCs and bankers to start crying again.)

Source:BusinessInsider