Why the Uber of banking Fintech model is a mirage

Amen/Bernard Lunn nails it: “The full banking service is more complex than getting a passenger from point A to B.” Very much more so!

“Banking as a platform,” on the other hand, and creating an awesome API for people to interact with your bank…

Daily Fintech

Pitches for “Uber of banking” ventures assume that you can leave the actual delivery to commoditized providers. This is a mirage.

There  are three different Fintech startup models in Consumer banking:

1. Add an unregulated mobile layer on top of existing banking services.Simple is the best example (acquired by BBVA for $117m in Feb 2014). This is clearly not the “Uber of banking”. In this model, you depend on Banks for the underlying service. This would be like Uber delivering a service that relies on licensed taxi drivers for the service. When Simple started, it was early enough in the Fintech revolution to add value by understanding how to build a mobile customer experience. Today you can pay a team of developers a lot less than $117m for that. How much Banks will be willing to pay for any venture following the Simple model depends on how the Customer…

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