Fintech News: September 30th, 2016

This week in fintech: private valuations come back down to earth, Bloomberg terminals allow outbound Tweets, how do retail investors want to feel, and defending a fintech product from incumbent copycats.

Fintech Unicorn Pain as the Public/Private Valuation Inversion Comes to an End (Daily Fintech)

This article takes a closer look into the high-flying valuations in fintech, and predicts some of the pain ahead as these valuations come back down to earth. Some companies are avoiding raising money in the meantime, while others seem to be reigning in high growth to find a shortcut to profitability.

Bloomberg Lets Subscribers Tweet from their Terminals (Finextra)

The Bloomberg Terminal has added another product to its long list of third-party integrations: Twitter. Part of Twitter’s value is that it serves as a real-time database for breaking news. This partnerships brings that data to a demographic who always stay on top of the financial news in real-time: active traders.

E*TRADE Unveils Emotional Triggers for Digital Investing (E*TRADE)

E*TRADE researched what investors want to feel when using an online tool to manage their investments. The top responses? For boomers, confidence and peace of mind. For millennials, enthusiasm, excitement, and joy. This research continues to guide product development for brokers, who are eager to attract millennial investors and gain their loyalty before they become wealthy.

Fintechs might be scalable but are they defensible? (Daily Fintech)

In the early days, single-product fintechs can offer a better solution than incumbents, and sell it at a high margin. However, when this product is easy to replicate, the incumbents will inevitably make their own, and can usually offer it at a lower price. At this point in the cycle, fintechs need to continuously communicate their value to their customers vs the competitor’s product. Banks have not figured this out yet. It’s time fintechs use behavioral analytics to build a customer retention strategy.

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