In the fintech space, on the application side (i.e. Affirm, Robinhood, SoFi, etc), most companies start off with one narrow product targeting a specific use-case and hope to expand to multiple products. The thinking is if consumers trust them with one financial feature (personal loan), this can be transferred to another financial feature (auto loan).
However, as Rohit Mittal of Stilt (a fintech startup) points out, this transition to multiple product lines has not been very smooth
for most fintech startups out there. Each of these different financial products has very different market dynamics and winning one category does not grant you success in another.
On a broader scale, the promise of fintech was to “unbundle the banks
” so it is sometimes odd to see these same players try to re-bundle all of these financial services into new consumer applications. I do believe product expansion on the financial infrastructure side (banking as a service) will be much more promising than the consumer side.