The Flip’s Post

Transcript

I think given enough time. We will probably end up in similar places. Banks will be like 20 X 56 will be like banks. FedEx would be like each other. Because as you're seeking growth, you can grow deeper, you can grow wider. And you're wider might be offering more products and which makes you start doing whatever that person is doing. Your wider can also become going to more geographies. I think eventually everybody will be like, you know, we'll be like ourselves. But talking about banks, I think banks fundamentally. I was listening to Bob's and he's right about it. The problem is the way they think. Unless you change banking leadership to become like a tech first organization that is wrong with products, science, decision making and engineering at the forefront, I think they will always be classic bankers. And so the way I look at it is that as long as the leadership of both different factions, banks and FedEx remain the same. Fintechs that are going product and engineering and customer and data-driven decision making will possibly move ahead. There is one elephant in the room, it's the license. I think fintech are a little bit afraid to get banking licenses until you get to 2nd level, mostly because of the way classic banks are valued on a netbook basis. And a lot of us are valued on revenue multiples. And you are afraid of valuation compression on that, but if you want to kind of really, really be honest with yourself. Eventually down the line. If you want to continue growing and handle as much customers as possible with the trust level they expect them to have for you, I think you need to get a banking license which will make you become one. And if you take a look at new bank, I think new bank now has a banking. Lizer always said was sorry they always had one. They only said one is exactly. I hear revolution is really pushing hard to get it back Alizarin. So eventually feedback will now be about how you think, not just the license. Now how do you run the business? And is your finance being really chilly powered by technology and products? And then eventually I pull seeds. I it's not like I proceed. I already do a bit of what ceremony classically does. CUDA is doing a bit of what money point is doing I better welfare money here we just have a whole different strongholds which I think will hold onto and begins just to develop other aspects of the businesses as a startup. You guys starting up, you'll have minimal resources and these resources needs to be devoted such that anything you focus on needs to reach its escape velocity. So it's a bandwidth question and this is the fundamental reason why you need to focus. What's usually what happens is that when you mature products, the bandwidth required to continue running that products reduces. Because it's matured, it's now an adult. Well, it can take care of itself. You've already gotten burns, you've done everything. Then you can focus on the next things to do. What the way to look at it, however, is a bandwidth right? Because if you look at organizations like Amazon, Microsoft, Google, they launch. Products should load, offer out. Some fail, some succeed. They have large organizations, plenty verticals. So this is not a question of why organizations cannot actually succeed at having multiple verticals. It's a question of bandwidth, and disk bandwidth is about one in your execution maturity. In terms of processes, systems. To investments we can make in terms of, you know, capital into the product itself. As well as every other factors of execution or production that you need. So in essence. As though we are still battling with maturity of your coproducts and you have limited resources to get escape velocity. You should focus on a few products as you begin to grow. I have more resources and you've matured and you know how to do things, business as usual. Then you can actually work on more products now, more this, more products and now be more products. Different geographies, different products in different geographies. So I think that's the way to look at it because boundaries is a complication is a complexity. Solving thing execution is about fixing complexities. So because you have multiple regulations in different jurisdictions, adds more layers of complexity. But assuming you've done it before, business as usual, you know the FCC, you know what they are looking for, you can do it again and again and again. It's not a big deal to you. They can easily expand. So the real limitation that you have is bandwidth. And different organizations have different boundaries. There are organizations that just managed to get to where they are. They organizations are really, really matured. If an Amazon said that they are coming to do my business and Nigeria and they devoted their bandwidth in Nigeria, I will be afraid. Nigeria is complex. That's the point between regulation, markets, people, the resources required to execute it. But do you have the resources in terms of people, knowledge, processes, systems? Zooms executed that's that's what's required. So if I want to expand to Kayla now I am a little bit afraid like here is a mature market with the same level of complexities regulation. Capable competition, the bandwidth requirement to really succeed at that. Even if I took away all my things from Nigeria and focused on just care what do I still have succeeded. So I I think ultimately that's just the way to look at it. So, so that's the framework that can connect. Small setups expansion to big startups expansion. It's it's just about it.