March 2020 - Vertical Neobanks

If you’re issuing cards or building a neobank, a subtle but important choice to make is who you partner with as an issuing bank.[1] The bank is a critical part of the banking as a service ecosystem. Roughly speaking, you as the neobank play the marketing and customer facing role, the banking-as-a-service partner you work with plays the technical in... See more

Vertical markets are particularly good candidates for a SaaS+fintech business model. While customers in horizontal markets often try different software vendors, resulting in multiple winners in a market segment, customers in vertical markets prefer purpose-built software for their specific industry and use cases.

Just as the internet and web browser unlocked the previous shift, the new ease of embedding payments, lending, and other financial products will allow industry-specific software platforms (Vertical SaaS) to destroy multi-market/horizontal solutions like Salesforce. Ever smaller niches will be able to sustain venture-scale software companies because... See more