Dec 22, 2023 · 16m · a16z

Big Ideas 2024: The Rise of the Developer as a Buyer in Financial Services with Angela Strange

Angela Strange · 10m spoken
0:00 / 0:00
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In this episode of Andreessen Horowitz's Big Ideas 2024 series, general partner Angela Strange discusses how software developers are becoming primary decision-makers in financial services purchasing. She details how open-source architecture, composable payment APIs, and generative AI are modernizing legacy banking infrastructure and expanding global access to financial tools.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. How this is scored →

The host as informed peer 1.8 Guest teaching 2.6 Guest disagreement 0.2 The host pushing back 0.2
05100:0010:000:13–3:04 · The host as informed peer 0/10 Introducing Big Ideas 2024 and Episode Overview The segment consists of an introductory overview, disclaimers, and a monologue by Angela Strange outlining her core thesis on the developer becoming a key buyer in fintech.3:04–6:13 · The host as informed peer 2/10 Historical Context: Banking Evolution from Marble to Code Steph opens by referencing Angela's prior FinTech DevCon talk about moving from 'marble to code'. Angela details the historical evolution of banking infrastructure into composable Lego-like blocks in an entirely cooperative tone.6:13–9:07 · The host as informed peer 2/10 Transforming Payments Infrastructure via Composable Blocks Steph prompts Angela for real-world examples of payment infrastructure tools. Angela explains how composable blocks reduce the need for custom stitching between disjointed legacy systems.9:07–12:52 · The host as informed peer 3/10 Modernizing Legacy Banking Systems with Generative AI Steph demonstrates expertise by citing Angela's stat that 40% of bank code is still COBOL, questioning how legacy institutions adapt. Angela reframes the issue around Gen AI's potential to dramatically lower replacement costs.12:52–15:39 · The host as informed peer 2/10 Regulatory Shifts, Open Source, and Global Customer Impact Steph asks about regulatory trends like open banking and the impact on end consumers. Angela explains how open-source libraries and lower overhead expand financial access globally.0:13–3:04 · Guest teaching 1/10 Introducing Big Ideas 2024 and Episode Overview The segment consists of an introductory overview, disclaimers, and a monologue by Angela Strange outlining her core thesis on the developer becoming a key buyer in fintech.3:04–6:13 · Guest teaching 3/10 Historical Context: Banking Evolution from Marble to Code Steph opens by referencing Angela's prior FinTech DevCon talk about moving from 'marble to code'. Angela details the historical evolution of banking infrastructure into composable Lego-like blocks in an entirely cooperative tone.6:13–9:07 · Guest teaching 2/10 Transforming Payments Infrastructure via Composable Blocks Steph prompts Angela for real-world examples of payment infrastructure tools. Angela explains how composable blocks reduce the need for custom stitching between disjointed legacy systems.9:07–12:52 · Guest teaching 4/10 Modernizing Legacy Banking Systems with Generative AI Steph demonstrates expertise by citing Angela's stat that 40% of bank code is still COBOL, questioning how legacy institutions adapt. Angela reframes the issue around Gen AI's potential to dramatically lower replacement costs.12:52–15:39 · Guest teaching 3/10 Regulatory Shifts, Open Source, and Global Customer Impact Steph asks about regulatory trends like open banking and the impact on end consumers. Angela explains how open-source libraries and lower overhead expand financial access globally.0:13–3:04 · Guest disagreement 0/10 Introducing Big Ideas 2024 and Episode Overview The segment consists of an introductory overview, disclaimers, and a monologue by Angela Strange outlining her core thesis on the developer becoming a key buyer in fintech.3:04–6:13 · Guest disagreement 0/10 Historical Context: Banking Evolution from Marble to Code Steph opens by referencing Angela's prior FinTech DevCon talk about moving from 'marble to code'. Angela details the historical evolution of banking infrastructure into composable Lego-like blocks in an entirely cooperative tone.6:13–9:07 · Guest disagreement 0/10 Transforming Payments Infrastructure via Composable Blocks Steph prompts Angela for real-world examples of payment infrastructure tools. Angela explains how composable blocks reduce the need for custom stitching between disjointed legacy systems.9:07–12:52 · Guest disagreement 1/10 Modernizing Legacy Banking Systems with Generative AI Steph demonstrates expertise by citing Angela's stat that 40% of bank code is still COBOL, questioning how legacy institutions adapt. Angela reframes the issue around Gen AI's potential to dramatically lower replacement costs.12:52–15:39 · Guest disagreement 0/10 Regulatory Shifts, Open Source, and Global Customer Impact Steph asks about regulatory trends like open banking and the impact on end consumers. Angela explains how open-source libraries and lower overhead expand financial access globally.0:13–3:04 · The host pushing back 0/10 Introducing Big Ideas 2024 and Episode Overview The segment consists of an introductory overview, disclaimers, and a monologue by Angela Strange outlining her core thesis on the developer becoming a key buyer in fintech.3:04–6:13 · The host pushing back 0/10 Historical Context: Banking Evolution from Marble to Code Steph opens by referencing Angela's prior FinTech DevCon talk about moving from 'marble to code'. Angela details the historical evolution of banking infrastructure into composable Lego-like blocks in an entirely cooperative tone.6:13–9:07 · The host pushing back 0/10 Transforming Payments Infrastructure via Composable Blocks Steph prompts Angela for real-world examples of payment infrastructure tools. Angela explains how composable blocks reduce the need for custom stitching between disjointed legacy systems.9:07–12:52 · The host pushing back 1/10 Modernizing Legacy Banking Systems with Generative AI Steph demonstrates expertise by citing Angela's stat that 40% of bank code is still COBOL, questioning how legacy institutions adapt. Angela reframes the issue around Gen AI's potential to dramatically lower replacement costs.12:52–15:39 · The host pushing back 0/10 Regulatory Shifts, Open Source, and Global Customer Impact Steph asks about regulatory trends like open banking and the impact on end consumers. Angela explains how open-source libraries and lower overhead expand financial access globally.

speaking balance: gold is the host, purple is the guest (3 minute bins)

0:00 · the host 0% · guest 100%0:00 · the host 0% · guest 100%3:00 · the host 0% · guest 100%3:00 · the host 0% · guest 100%6:00 · the host 0% · guest 100%6:00 · the host 0% · guest 100%9:00 · the host 0% · guest 100%9:00 · the host 0% · guest 100%12:00 · the host 0% · guest 100%12:00 · the host 0% · guest 100%15:00 · the host 0% · guest 100%15:00 · the host 0% · guest 100%
Sharpest disagreement ▶ 10:45 Reframing AI risk in financial services

Angela gently counters conventional industry fear about AI risks by arguing the real risk is not adopting Generative AI fast enough.

Hardest push from the host ▶ 9:07 Challenging modern developer thesis with COBOL legacy code

Steph questions how big banks can embrace developer-centric composable code when 40% of their infrastructure is tied up in decades-old COBOL.

Biggest teaching moment ▶ 11:45 Explaining how Gen AI handles legacy COBOL code translation

Angela educates the host on how LLMs and GitHub Copilot can re-engineer legacy COBOL workflows and speed up modernization.

The host holds their own ▶ 9:07 Citing COBOL statistics from guest's prior work

Steph shows deep preparation by recalling a specific statistic about COBOL usage from Angela's earlier presentation to press her on implementation challenges.

the scores for every segment, with the reasoning behind each
ChapterTopicThe host as informed peerGuest teachingGuest disagreementThe host pushing backWhy
Introducing Big Ideas 2024 and Episode Overview 0100 The segment consists of an introductory overview, disclaimers, and a monologue by Angela Strange outlining her core thesis on the developer becoming a key buyer in fintech.
Historical Context: Banking Evolution from Marble to Code 2300 Steph opens by referencing Angela's prior FinTech DevCon talk about moving from 'marble to code'. Angela details the historical evolution of banking infrastructure into composable Lego-like blocks in an entirely cooperative tone.
Transforming Payments Infrastructure via Composable Blocks 2200 Steph prompts Angela for real-world examples of payment infrastructure tools. Angela explains how composable blocks reduce the need for custom stitching between disjointed legacy systems.
Modernizing Legacy Banking Systems with Generative AI 3411 Steph demonstrates expertise by citing Angela's stat that 40% of bank code is still COBOL, questioning how legacy institutions adapt. Angela reframes the issue around Gen AI's potential to dramatically lower replacement costs.
Regulatory Shifts, Open Source, and Global Customer Impact 2300 Steph asks about regulatory trends like open banking and the impact on end consumers. Angela explains how open-source libraries and lower overhead expand financial access globally.

Statements from this episode (8)

Prediction Not checkable as stated
Strange: 2024 will see developers become key buyers in financial services
“I think in 2024 will be a significant rise of the developer as the buyer in financial services.”
Angela Strange Dec 22, 2023 ▶ 1:40
Insight
Strange: Developer buying power in financial services favors new entrants
“The rise of a developer as buyer in financial services companies of all sizes favors new entrants.”
Angela Strange Dec 22, 2023 ▶ 2:18
Assertion Not checkable as stated
Strange: Fintechs are prioritizing sandboxes and open source to attract developers
“Fintechs are already prioritizing the creation of developer sandboxes to let customers try before you buy and are even open sourcing parts of their solutions.”
Angela Strange Dec 22, 2023 ▶ 2:30
Assertion Partly supported
Angela Strange: Mainframes still settle 99% of dollars in the US
“Those mainframes are still where, you know, 99% of dollars in the US are settled.”
Angela Strange Dec 22, 2023 ▶ 4:25
Assertion Not checkable as stated
Strange: GitHub Copilot boosts engineer productivity by 30% to 100%
“But if you look at GitHub copilots, depending on the engineer, that's 30 to 100% increased productivity.”
Angela Strange Dec 22, 2023 ▶ 11:57
Prediction Not checkable as stated
Strange: LLMs will automatically translate legacy COBOL code into modern languages
“You can imagine a world where LLMs get so good that you could feed in large portions of code written in COBOL, And they would spit out the same amount of code or the same functionality of said code in a different language, you know, and we're not there yet, bu…”
Angela Strange Dec 22, 2023 ▶ 12:09
Assertion Contradicted
Strange: US banking infrastructure costs $10-$30 monthly per account
“If you want to stand up banking infrastructure with all the software and, you know, especially in the U S it's going to cost you know, 10 to 30 dollars a month just to keep the lights on.”
Angela Strange Dec 22, 2023 ▶ 14:24
Assertion Supported
Strange: Bank engineers process trillions through open-source ACH library
“There's now an open source ACH library. And engineers from banks are running trillions of dollars through this library and catching all of these edge cases and fixing it.”
Angela Strange Dec 22, 2023 ▶ 15:16
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