This week in FinTech: winners and losers in a bear market, roboadvisor leapfrogging, more drama with Twitter’s core users, how millennials are investing wrong, and more.
If 2015 was the year of the innovator robo-advisor, 2016 will be the year of incumbent acquisitions. Solid list of robo-advisor M&As, and a list of which big banks are building their own products. Read our take on the robo trend: The Empire Strikes Back
FinTech and the Macroeconomic Cycle (Daily FinTech)
How will the next bear market affect FinTech? Out of the last two crashes, 2001 was tech and 2008 was fin. Luckily, there is no single FinTech market, as the bitcoin, blockchain, lending, insure-tech, payments, and investing spheres have such different dynamics. The next bear market will yield some winners and losers nonetheless. Losers: high burn rate ventures that rely on advertising for growth, momentum investors who came late to the cycle. Winners: the last men standing after consolidation, capital efficient early stage ventures, B2B and B2C ventures with low-cost products.
Who’s invested in who? CB Insights releases a huge FinTech infographic and a list of the top investors in these 201 startups.
As Twitter’s stock continues to trade near all-time lows, its investors want it to focus on user growth, reach broader audiences and make more money off of its users, like Facebook has done. Unfortunately, these changes threaten to alienate Twitter’s core users, and striking a balance may be difficult.
Millennials, you’re investing all wrong (Business Insider)
A survey from Swiss Bank reports that millennials are most haunted by the 2008 financial crisis, and it’s hurting their investing prospects. In short, they trust their gut feeling too much, they depend on market timing, they’re holding too much cash, and they’re not satisfied with their portfolios.
eToro is a financial social network whose main product, the ability to automatically copy pro traders, is regulated out of existence in the United States. This week it launched a new feature, Copy Dividends, allowing copycats to profit off of their mentor during the relationship, rather than after it ends.