The Rise, Fall & Reset of The Fintech Industry

In this a16z Podcast episode, Erik Torenberg hosts David Haber from a16z and Zach Perret, CEO of Plaid, to discuss the boom and bust cycle of fintech from 2018 to the present. They analyze the explosive growth during COVID-19, the subsequent funding drought, and the resurgence of activity in the market. The conversation covers the impact of AI on fraud and underwriting, the shift towards deposits and full-stack financial products, the adoption of external software by incumbents, and the expansion of embedded finance. They also explore the potential convergence of crypto with traditional financial services and the increasing sophistication of AI-driven fraud. The discussion concludes with insights into investment opportunities in software-led businesses within financial services and the future direction of Plaid.