The Future of Consumer Finance: A Shift in Relevance

The Future of Consumer Finance: A Shift in Relevance

• Technological progress is bringing about significant changes in the financial industry, leading to a shift in perceived scarcity and relevance.

• Albert Wenger, a renowned venture capital partner, emphasizes that attention has become the new decisive currency, surpassing the traditional notion of monetary scarcity.

• The hypothesis formulated suggests that consumer products will thrive by delivering daily touchpoints, creating a strong customer relationship based on continuous engagement.

• Starbucks Pay has emerged as a prominent payment method, overshadowing traditional fintech players with its popularity and convenience.

• Starbucks holds over 1.9 billion in cash deposits, indicating its increasing financial relevance despite not being a traditional bank.

The Future of Consumer Finance: A Shift in Relevance

The Future of Payment Methods

• The future of payment methods is evolving, with a shift towards digital banking and non-conservative driven apps.

• There is a significant relevance of customer relationship in this industry.

• The availability of enough providers on the API side has made development costs significantly cheaper, enabling the creation of non-conservative driven apps.

• The industry is moving towards simplifying consumer products and product providers, with a focus on daily touchpoints and one-off touchpoints.

• Apple's development of Apple Pay and the Apple Card signifies a significant shift in the financial industry, with a focus on daily touchpoints.

• Fintech players have been successful in delivering daily touchpoints, with examples like Square and N26 leading the way.

• Square has managed to keep customer acquisition costs below €10, making it a cost-effective strategy for acquiring customers.

The Future of Payment Methods

Key Innovations and Success of CashApp

• CashApp made significant strides in catering to the underbanked black community in the US, providing them with accessible financial services since 2013.

• The company's focus on its customer group has been a driving force behind its success, reflected in its product innovations and marketing strategies.

• CashApp's early introduction of features like the cash tag and Bitcoin purchases set it apart from other digital banks and garnered a large user base, with over 7 million users in a short time.

• The product innovations, particularly the ability to receive payouts early and without conditions, addressed the financial needs of the underbanked community, setting CashApp apart as a significant driver of financial inclusion.

• The brand's bold and unconventional marketing strategies, including partnerships with artists and the promotion of cultural content, have contributed to its widespread recognition and appeal.

Key Innovations and Success of CashApp

Creating a Culture of Ambitious Target Group

• The key to using initials on a daily basis is to create a culture of a really ambitious target group, which was made possible for the first time by active people who paid it back gratefully.

• One example is the use of Twitter exclusively via Check Toasty, which introduced new functions such as instant money transfer and cash tab, ultimately building the brand and creating a culture.

• The utility-based network allowed customers to share payments and invoices within the app, making it a unique and attractive feature in the banking industry.

• Special campaigns were also launched to support black culture in various areas like music, art, and sports, creating a sense of community and giving back to the community through the product.

Creating a Culture of Ambitious Target Group

The Future of Banking and Financial Players

• The speaker discusses the evolution of financial players in the market, emphasizing the need for active and aggressive branding to achieve significant user base and brand recognition.

• The speaker highlights the importance of daily touchpoints and product innovation in establishing a strong presence as a financial player.

• The integration of banking into consumer apps and products is identified as a key trend for the future, emphasizing the significance of touchpoints in shaping consumer behavior.

• The discussion also touches upon the potential changes in commissions and the impact of standardization and efficiency gains in the financial industry.

The Future of Banking and Financial Players

Conclusion:

The future of consumer finance is evolving with a shift towards creating strong customer relationships through continuous engagement. The rise of daily touchpoints and the importance of attention over monetary scarcity are reshaping the industry, making it crucial for financial players to adapt to this new paradigm.