Making sense of the industry’s headline acquisitions

We recover conversations from the Wharton FinTech podcast with Galileo and SoFi to shed some light on the strategic rationale behind this $1.2 billion transaction

M&A is on the rise in the Fintech space. We at Wharton have been fortunate to host industry leaders whose businesses range from small startups to unicorn-status. We’ve talked about personal finance, regulation, BaaS, insurtech, blockchain, capital markets, financial inclusion, payments, and investing, among many other exciting topics.

While the fintech revolution is far from over and will continue to disrupt existing business models, some markets are entering a maturing phase as companies’ offerings expand…

Photograph by AP Photo/Matt Rourke

Leveraging existing banking relationships was critical the first time around

Navigating payroll data aggregation and the application process was challenging for smaller SMEs. So was finding a lender to partner with.

Giving smaller companies more time and matching them with avid fintech partners will be crucial in the next iteration. We offer a few proposals.

The first round of the Payment Protection Program is in the books. Merely two weeks after eligible lenders began receiving applications, almost $350 billion had been approved and committed ─disbursing the funds is another story.

It’s now essential to take a step back and understand what we learned and how we can do better the…

The challenges of distributing relief dollars have exposed structural issues that run deeper and need fixing; they’re more pressing now, but they’ve existed for a long time

Open Banking and blockchain could speed up the process of distributing relief dollars from weeks or months to minutes.

Fintechs have stepped up and are leading the way through the crisis, but we must think harder about driving structural change to create a resilient financial ecosystem.

Technology has made us more resilient than merely a decade ago. This is in part because technology itself is more flexible and adaptable; It’s less purpose-built and more centered around use cases, making it a more powerful countercyclical tool.

Such flexibility has greatly contributed to how we respond to the COVID-19 crisis. It’s behind…

Guillermo Gonzalez

Passionate about all things Fintech...and sports; The Wharton School

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