A common theme we have observed in the landscape of consumer-focused venture-backed technology startups has been the shift toward bundling. By offering multiple products, applications, and services from the same platform, these companies can scale more quickly by growing their user base and maximizing engagement. This secular shift is especially prevalent in financial services and has also been seen in adjacent verticals such as mobility. Driven by shifting consumer preferences, companies like Grab are now expanding services across multiple verticals of financial technology and mobility.
A plethora of fintech companies over the past decade have proliferated to shift customers away from traditional retail banks. These retail banks, whose customers primarily consist of individuals and small and midsize businesses, offer a full suite of end-to-end banking products—from checking and savings to loans to insurance. Packaging one or more of these types of products into a single offering is known as “bundling.” Fintechs have attacked the retail banking value chain via a piecemeal approach, offering targeted, dedicated key services to unbundle these retail banking products. The delivery of these tailored, single-product offerings with new business models, customer acquisition strategies and distribution channels has disrupted the retail banking sector, a development commonly known as “unbundling of the retail bank.”