🌊The Fintech Wave #50

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Oct 24, 2022

Hi everybody. Nino is here. I’m welcoming 124 new members that joined us since last Monday and recently we passed the 2000 subscribers mark🎉🎉Next goal is 5000.

TLDR: Check out Warren’s Buffet portfolio. German fintech is shutting down. American banks’ Q3 results are out. The loan marketplace raised money. Fidelity will offer Ethereum to its clients. N26 is added option to purchase crypto in the app.

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Excellent visualization of Warren’s Buffet portfolio

Somebody created this excellent graphic of Warren Buffest’s portfolio - $300B. This is great for getting some idea of which companies to invest in. More than 50% of his portfolio is just in 2 stocks - Apple and Bank of America.

European News and Funding

Investing app Nuri is shutting down😔

Berlin-based Nuri is (or better to say was) investing app that offers a free banking account with easy access to invest in cryptocurrencies and stocks. The app has a neat design and the idea of combining a bank account with investing tools is really good, but unfortunately, Nuri is shutting down. The startup was probably unprofitable and with the lack of cheap money, it became unsustainable to do business anymore.

Most important for customers, all assets are safe and can be withdrawn without any issues.

In the announcement, the CEO said they were looking to find an acquirer, but they were unable to find anybody. The startup has a pretty big user base of 400.000 people, so it is somehow surprising that nobody wants to acquire it. If you are interested you can read the whole letter here.

Also, looks like some of the ex-customers are happy with this end.

N26 adds the crypto trading product to its app

If you are using N26 (one of the biggest neobanks in Europe) here is some good news: you will be able to buy and sell cryptocurrencies directly in your N26 App.

The bank is partnering with Bitpanda (a cryptocurrency exchange) to handle trading and account custody. N26 customers will soon be able to trade almost 200 cryptocurrencies. You can check more details here. Although it is a private company, N26 shared 2021 financials - the bank had a €170 million net loss. Time to work on profitability.

Americas News and Funding

US Banks beat all the estimates for Q3 earnings🚀

American banks just released Q3 results and they beat all the analyst’s estimates. With billions of revenue more than projected, banks’ stocks are back in investors’ focus. The banking sector and other more conservative industries are benefiting from higher interest rates, while on the other side, the tech sector which is always focused on growth is hit hard by these new rates and lack of cheap money.

Goldman Sachs

Earnings per share: $8.25 vs $7.51 estimate

Revenue: $11.98B vs $11.53B estimate

The consumer and wealth management sector grew 18% compared to the previous year, but Investment Banking is down - 57%.

Bank of America

Earnings per share: $0.81 vs $0.78 estimate

Revenue: $23.5B vs $11.53B estimate

Net Earnings $3.07B

JP Morgan

Earnings per share: $3.12 vs $2.87 estimate

Revenue: $32.7B vs 31.7B estimate

Wells Fargo

Earnings per share: $1.30 vs $1.09 estimate

Revenue: $19.51B vs $18.78B estimate

Loan discovery🔎platform raises $3M

BAGS is a New York-based loan marketplace that offers affordable funding for small businesses. So far as an MVP the startup deployed over $5M in loans.

In order to qualify for the loan business needs to be incorporated for at least one year and make $5K of revenue per month. Loan amounts can be anywhere between $5K and $5M, while interest rates are ranging from 4 to 11%. The platform is still not launched but you can apply for the waitlist.

Banks are looking to take over some customers from neobanks

One of the main selling points for a lot of neobank was an option that you get your salary 2 days earlier on your account (Wednesday instead of Friday). JP Morgan decided to roll out that feature to its accounts to challenge neobanks and attract new customers. More details on this article. Looks like neobanks that wanted to disrupt traditional banks could end up disrupted by these old banks😂😂😂

Crypto ₿ites

Fidelity will offer Ethereum to its clients

With $4.5 trillion under management, Fidelity is one of the biggest asset management companies in the world and it will now offer Ethereum to its clients based on the email they sent out.

The company will offer custody and trading services to its institutional clients starting this month. I hope this could help push the price of ETH, which is down 65% this year.