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.

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