1/ Let's talk predictions for fintech in 2021

In 2021 fintechs will need to innovate on their go-to-market strategies as much as they do on their products:

I discuss how offline is back + physical advertising + gaming/sports partnerships & creators as distribution

2/ First here's the the link to our @a16z fintech team's post on where the big ideas we think Fintech will tackle in 2021

Now let's dive in on these go-to-market trends https://a16z.com/2020/12/17/big-ideas-for-fintech-2021/

3/ In consumer fintech acquiring users has not changed in years - it's all about online paid advertising

But paid online CACs are relatively high - & it's anecdotal -but from what I've seen have continued to as incumbents + wave of fintechs start to saturate these channels

4/ Too often I see fintechs rely on online adds to get users in the door & believe that more online spend = new high quality users

What in fact happens is the unit economics become upside down & the business doesn't work in a scalable way. CACs are eating gross margins

5/ If you're like me you are likely seeing tens of new ads for fintech products on TikTok/IG/FB - how are we supposed to pick?

And who are we supposed to trust? Who do I identify with? And does the ten second video really push me to open a new bank account?

6/ In my view, what paid online misses above all is this one crucial component - trust - which is so important in fintech!!

The level of trust needed to open a bank account & deposit money is so much greater than that of adopting a new social app or buying a new pair of shoes

7/ And that's where new distributions models in fintech are going. Founders need to think how can my product & brand get pull from my target audience & how can I build trust with them in an authentic way?

Some of this has been happening already - but we can do more

8/ Referrals are now as important as ever. Fintech referrals programs figured out that giving your users incentives are better than paying FB & Google. The added bonus - you trust that friend

@RobinhoodApp's give a share get a share was new and created unprecedented momentum

9/ And in many cases - offline is the new online

Fintechs can leverage offline communities and affinity based groups to adopt their products. Money is no longer a taboo-only subject & getting buy-in from communities and adopters is a powerful wedge that fintechs must pursue

10/ Physical locations as a marketing play is coming back

Earlier this week @fintechjunkie was asking what would happen to bank branches in the future. Most agree - they are expensive billboards at this point https://twitter.com/fintechjunkie/status/1338598993190932487

11/ But for fintechs - no need to open branches in 100s of cities when you can own a stadium or be on jersey and get broadcasted to the world

@SoFi Stadium with the #Rams & #Chargers + @Chime's @dallasmavs partnership are using sports & giving physical advertising a new life

12/ @CashApp partnered with @100Thieves to create the CashApp compound bridging the finance/gaming gap

What they also have done with @animalcrossing dodo codes has been super innovative & different. The idea being connect with your users where they are https://twitter.com/CashApp/status/1280583184397279233?s=20

13/ The newer & most interesting trend in Fintech that I believe will become so important are consumers adopting financial products from their favorite creators

This has happened in the past - you would watch TV and get a CapitalOne card because Samuel L. Jackson told you to

14/ But in the future you're adopting a new products because @charlidamelio or @DavidDobrik is telling you to

And they won't just be telling you to. They will be building their own products with fintechs. These products will be representations of their brands & their personality

15/ These won't be off-the-shelf generic products but one that allows you to interact with them in a deeper way

For example - What if @DavidDobrik could drop his new puzzle & make the payouts-outs through his own product enabled by a new fintech? https://100kpuzzle.com/ 

16/ You can check out some of these trends and more in our @a16z fintech newsletter (sign-up below)

And if you're building a new fintech product with some innovative go-to-market strategy I would love to chat

https://info.a16z.com/newsletters-fintech

17/ In 2021 - let's stay away from expensive online CACs and find new ways to get more consumers to hop on the Fintech and get access to better financial products!

Consumers need and are looking for alternatives - it's our job to make sure they have a reason to adopt them!