Fresh from the press, here’s the #2nd edition of Pocket Change - a fintech newsletter made by the Netguru team. 👇
If you like the content, send a word to your friends and tweet #PocketChange. ❤️
This week you can read about:
✅ How a 168-year old money transfer dinosaur is trying to fend off a plethora of remittance startups, the likes of TransferWise and WorldRemit 🔥
✅ One chart that helps you understand where is the Promised Land for insurtech (at least for SMEs) 💰
✅ A bill that is frustrating a lot of fintech companies in the Netherlands 😡
✅ What Jamie Dimon, the CEO of JP Morgan Chase, has to say about fintech 👨
✅ Tips on pitch decks from the CEO of Carda, a startup with $1bn+ valuation 🏦🏧🗣️
1. On the News
Is fintech still hot? Which stocks have been the best bet for your money - banks, S&P 500 or fintech indexes? Click here to find out.🌶️ or ❄️?
Credit Karma’s GM Anish Acharya (formerly of Google Ventures, Social Deck, Amazon) has joined Andreessen Horowitz as a general partner. “There’s a joke I sometimes give in a presentation on fintech: the best fintech investments are probably Google stock, Facebook stock, and Credit Karma stock”. Click here to find out why. 📈
BNP Paribas is going beyond traditional banking services. Two years ago one of Europe's biggest banks partnered with the fintech startup OneUp to automate cloud banking tools for SMEs. Read about the results here. ⛅
TransferWise is on a hiring spree and all about diversity. One of Europe’s most progressive fintechs aims to hire 750+ experts in the next 12 months. Also, two CFOs: Ingo Uytdehaage (Adyen) and David Wells (ex Netflix) joined the company’s board. “We know that with these hires, we have not made our board any more diverse (...)” Kristo Kaarman, TransferWise’s CEO stated. Is this an IPO hint? And who’s going to be the next member?
3. Lessons Learned - How Western Union Tries to Change the game
If you somehow missed this brand, Western Union is the 168-year old leader in international money transfers, generating $5+ billion in annual revenue.
Eight years ago, Khalid Fellahi, the general manager of the company’s Africa division, had been tasked with building out the Western Union’s digital business.
Fast forward to 2018: digital channels accounted for 12% of Western Union’s revenues. The growth pace: 20% y2y. Amazing.
Key takeaways from their fintech strategy:
✅ Unlike many banks which are closing branches, Western Union DID NOT stop investing in physical locations ✅ Also, the company decided to outsource parts of building its digital arm to Silicon Valley engineers ✅ Western Union has found a way to make use of its physical network:
the company struck a deal with Amazon to allow customers in 16 countries (eg. Kenya) to pay cash for orders with Amazon
the company handles payments to many publishers for Google’s AdSense system more deals of this nature are coming
✅ Western Union recently announced a partnership with TechStars, a start-up accelerator.
The goal is to hunt for innovations and raise 10 early-stage start-ups that are trying to disrupt cross-border money transfers and/or the payment industry in general.