Fin Tech's Judgment Day

Kauflin and Mason talk about fintech, the term widely used for technology startups focused on financial services. These fledgling companies were founded mostly in the last decade, with the goal of disrupting old-guard banks, insurers and credit card companies with whizbang tech. Only a few short years ago, venture capitalists couldn't get enough of the sector. In 2021, CB Insights reported that fintech outfits raised more than $140 billion in 5,474 funding rounds. That was more than the previous three years combined. As the public markets soared, many went public, raising $10 billion from some 28 fintech IPOs in 2020 and 2021, S&P Global Market Intelligence reports. No category within fintech may be more troubled than the so-called "neobanks." The idea behind these legacy-bank disruptors is simple: Offer basic consumer banking services like debit cards and small loans on mobile phones.