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Get ready to learn about fintech, Superhuman, and a curated set of top reads

Hey everyone! Thanks for tuning into this week’s newsletter. We’re talking fintech, Superhuman, and recommendations to other worthwhile reads (besides us of course)  😏.

Fintech thoughts to share:

Yesterday, Aaron Frank, formerly co-founder of Final, shared a series of tweets on the difference between what he calls soft and hard fintech. You can click on any of the tweets to view the entire thread. I’ll share highlights below:

Metaphorically, you can think of hard fintech as the piping and infrastructure of financial services whereas soft fintech is more the decorative design and operational component.

I found this particularly interesting as it potentially highlights a revenue plateau that soft fintech is doomed to face. To date, I haven’t seen an example of soft fintech that scaled to tens of billions in revenue. Even long-standing fintech companies and products like Personal Capital (founded in 2009) and Mint (launched in 2006) only have estimated annual revenues of $100M and $500M (rough back of envelope calculation since Intuit doesn’t breakout Mint’s actual revenue).

I totally agree with this. The winners in soft fintech must be category definers - products that create their own market. Soft fintech is like getting a group of settlers to establish a new colony together. Hard fintech is like upgrading buildings in an existing city.

Another great point here. The best soft fintech products I’ve seen either have an amazing end-user experience, like DoNotPay, or a kick-ass distribution advantage, like NerdWallet. Regarding hard fintech, I’ve seen lots of innovation in the banking space from startups after the Durbin Amendment in the Dodd-Frank bill effectively limited income big banks can derive from interchange fees.

For any fintech entrepreneurs, investors, or enthusiasts, I highly recommend skimming over the entire thread!

The best feedback from our design sprint:

We just wrapped up an incredible design sprint for our v2 update (coming late-September) and heard the sweetest compliment!

“I love the feel of the app! It gives me a Superhuman feel.”

As a massive Superhuman stan, I’m extremely flattered by the comparison. For those of you that don’t know, Superhuman is a new email client that’s eliminated much of the friction that comes with managing tons of email every day. It’s users really love it! Since my goal with Reconcile is to make managing our day-to-day expenses extremely frictionless, I’m happy to see us moving in the right direction!

Other blogs/newsletters to follow:

In the spirit of helping bring more value to your lives, I want to share a few other newsletters that you should follow for more business and tech analysis. Here are links to some of my favorite reads that I came across recently!

  • Built for Mars: Monthly posts breaking down fintech user experiences and design

  • Consumer Startups: Weekly posts analyzing noteworthy, new consumer startups

  • Monetary Musings: Weekly posts on all things product management, technology, and finance. Rohit is a phenomenal writer so this is a definite subscribe.

P.S. If you appreciate these newsletters and want to help us develop more content, we’re looking to bring a marketing lead onto the team. Reach out if you’re interested! Otherwise, would love it if you could help spread the word and share your favorite newsletter!!!

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Thanks for reading!

Jaimin Desai - CEO & Co-Founder of Reconcile

www.getreconcile.com

*P.S. If you have any thoughts on our content, please leave a comment or email me at jaimindesai@reconcilemoney.com!