unbundling & rebundling

Remember those bulky all-in-one printers from your grandpa’s old days that tried to do everything but did nothing well? ️

Yeah, traditional banks were kinda like that. One-stop shops for everything from checking to mortgages, but the fees were suspicious and the user experience was about as exciting as watching paint dry. (Can you tell the sarcasm here?)

Then came the unbundling revolution. Imagine breaking down that clunky printer into a sleek laser printer for documents and a separate, top-notch photo printer for Insta-worthy pics. That's what unbundling did to finance. Fintech startups popped up across the globe each focusing on a specific need: payments (think Venmo) payment app), investing (like Robinhood, with zero free investing), or loans (SoFi, your knight in shining armor for student debt).

Benefits of Unbundling:

• Innovation went BRRR: Unbundling unleashed a wave of creativity in fintech. Startups could experiment faster than a teenager trying every filter on TikTok, leading to interesting new features and a way better user experience.

• Competition got FIRED UP: More players in the game meant a more competitive landscape in which the end consumer benefited from lower fees, better rates, and more options.

Rebundling: Wait, We're Putting it Back Together?

Hold up, is this some kind of financial Stockholm syndrome? Not quite. Rebundling isn't about going back to the bank's clunky ways. It's more like a financial Avengers Assemble!

Fintech companies are teaming up with banks and other players to offer a wider range of services under one roof. Think of it like a super app (like the Little app for Kenya. Kenyans iykyk) that let's you order food, hail a ride, and pay your bills – all within the same platform. Open Banking, which is basically secure data sharing between financial institutions, is also fueling this trend.

Benefits of Rebundling:

• Convenience Level: : Imagine managing everything from checking to investing in one place. No more using five hundred different apps to manage your financial life – your financial life is finally organized, just like your color-coded Spotify playlists.

• Customization is King: Rebundled platforms let you pick and choose the services you need, like building your own financial dream team. Want a high-yield savings account from one provider and a robo-advisor from another? Go for it!

The Future of Fintech: A Choose Your Own Adventure

So, what's next for fintech? It's likely to be a choose-your-own-adventure story with both unbundling and rebundling playing a role. Fintech startups will keep innovating with niche solutions, while partnerships and data sharing will create more integrated experiences.

Ultimately, this competition will lead to a more diverse and fire financial landscape that empowers us, Gen Z, to take control of our money and adult like champs!