Andreessen Horowitz' Anish Acharya interview on payments and lending - Business Insider

As big tech continues to blur the lines with fintech, Acharya stressed the importance of consumer trust if they want to get products off the ground.Retail banks could see big tech move in on their turf. Here's what they need to do to stay ahead."Payments by its very nature is transactional. It's facilitating a transaction. I think one of the big things I'm seeing is the transition from owning a transaction to owning a relationship," said Acharya.

"I think there is going to be margin pressure on those transactions so long as they're undifferentiated," he said. Acharya referenced Square, explaining that first, it built a customer base through its payments platform and point-of-sale hardware. "The second act will be building a broader set of services that are contextual to a relationship instead of a transaction that's solely defined by speed and cost," said Acharya."If you actually understand how transactions are flowing through the system, then you have potentially unfair advantage when it comes to underwriting," said Acharya. Though, there are two kinds of lending to consider, he said.

There's factoring, which is where a loan is based on pending invoices, or cash that a company will receive at a future date. Then, there's lending in the traditional sense, where creditworthiness is assessed on more than future income. "What you're seeing is a lot of payments companies, because of this data advantage around underwriting, are starting to move into factoring. Less of them are providing the more traditional sort of loan," Acharya said.

I swear I thought this was Tony Parker for a hot sec.

I’ve heard CIOs say “we are not a ______, we are a fin tech” about five times this year.

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

What first, business, and economy class looks like on Emirates - Business InsiderBusiness Insider's Rachel Hosie takes us through each class on Emirates' double-decker Airbus A380.
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »

The Digital Banking Ecosystem from Business Insider - Business Insider[NEW REPORT] The Digital Banking Ecosystem: BIIntelligence explores the incumbent banking landscape and the key players banks are calling on to help their transition to digital
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »

How to win a business pitch competition, according to a 12-time winner - Business InsiderA 33-year-old entrepreneur won a dozen pitch competitions in 2 years and raked in $75,000 along the way. Here's how she uses stats to craft a winning pitch.
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »

Austin-based Next Coast Ventures raised $130 million for its second fund - Business InsiderSilicon Valley is just realizing that profitable companies are wise investments, but Austin-based Next Coast Ventures has a $130 million head-start in its second fund
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »

Laid-off Juul employees describe how the e-cigarette company imploded - Business InsiderJuul just laid off 650 workers after federal investigations rocked the company. Workers who were affected describe how it was handled and what they saw leading up to it.
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »

Customers of controversial startup Rev are demanding the transcription company's CEO raise wages for its underpaid contract workersContractors revealed to Business Insider that they make less than what the company advertises, and earn less than minimum wage.
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »