bank

“Every bank, just to simplify it, every bank has a budget of a billion a year in technology spend, yeah? Mostly because they have an immense amount of stupid people running around doing nothing.”

“Sort of over the course of the 18 months at City Ventures, I was building more and more conviction about this idea that between mobile and regulatory and software changes that banks were not going to be able to adapt to the changing consumer behavior and chang…”

“So, we're a firm believer that banks are the future, and we can help them.”

“With Dodd-Frank, this big underserved piece of the market where there's money for super prime and there's money for deep subprime, but everything in between has largely been vacated by the banks and the finance companies.”

“When I read about very, very, very bad debt that many banks are taking on now and then repackaging because regulations have been loosed. Another trillion dollars of this is out in the economy.”

“Fintech is becoming not just something that banks do, but it's something that all companies do. Anyone that has a financial relationship with a consumer continues to be a part of fintech”

“And I just really hate using bad products and they never improve. It never feels like the people at the bank really care about you as a customer.”

“This time around, we are not coming off a bubble. The banks are much less leveraged. And there's no analog as deficient in substance as the subprime mortgage.”

“At least in the U.S., there's probably around a hundred banks that have more than ten billion in assets.”

“So I see how challenged the banks are in being able to meet the needs of a digitalizing economy, and how difficult is it for them to compete with the burgeoning fintechs. So I believe, actually, there's a huge amount of open field running to come.”

“Like if you take the top seven, eight fintechs and the top seven, eight banks last year, Something like eight hundred billion dollars in market cap swap hands between them.”

“The banks so far have held up generally much better than the fintechs in the public markets, and so valuation environment might become more conducive to some more sort of fintech to bank type M&A. We've started to see some of it. I think there's probably more …”

“However, anytime you build in financial services, you have to build on top of the bank. And to do this right now, it takes nine, 1218 months. It's extremely painful. It's extremely expensive. And you can only probably ship 10% of the products that you want, ri…”

“I do think what this does lead to though, is the system moving more towards wholesale finance, narrow banking in different pockets, and that the funding of banks Will over time become more wholesale, less retail, more volatile, more credit differentiation.”

“The sense is that in a lot of our geographies, entrepreneurs try to almost do everything except embracing the space, except becoming a bank. Because of some arguments that if you became a bank, then your valuation multiple was going to be lower and you're goin…”

“Now they have no incentive to do that because if they let you do that, it's easier to move money out, and they don't want you to move money out because they make money on you storing money there. That's how a bank works. You get lock in to other products, but …”

“Banks are at six percent. We're at .3 in most markets.”

“And sometimes people, they're kind of, they're trying to find, like, a perfect solution, but the truth of life is that nobody knows future, and nobody may make, like, perfect decisions just based on information or analysis, because if it were the case, then Mc…”

“Today the regulation has changed. Banks do not finance innovation and startups anymore.”

“I, you know, I've said many times is that if you look at the European landscape, majority, vast majority of the European GPs have not spent a single day working in a real company. They've worked in consulting firms, banks, but they haven't worked in a real ope…”

“I think in 10 years time, it'll be obvious that like, oh yeah, your bank is really powerful, and it can do all of these things, and it's all fully integrated. So yeah, that's just a freaking huge opportunity”

“Look, fine. So they shouldn't use it which is going to be another reason why banks are going to be left behind, whatever.”

“Whenever a bank was explaining something complex, your rule of thumb should be whenever a bank was explaining something complex, you're losing money.”

“The average bank spends 93% of its cost, of its tech cost, on maintain initiatives. Seven percent go into building new things.”