Woke Google Maps, how Wells Fargo is losing money on fintech, and the global AI race | E1967

Bilt Partnership

The collaboration between Bilt and Wells Fargo highlights the complexities of fintech partnerships. Alex Wilhelm explains that Bilt allows users to pay rent with a credit card to earn miles, a concept that initially seemed promising but has proven financially challenging for Wells Fargo 1. The bank expected to benefit from new credit card users but found that customers were not maintaining balances or engaging with additional services, leading to significant financial losses. Jason Calacanis notes, "It turns out that Bilt, which is now worth three billion dollars, is losing Wells Fargo around $10 million a month, which is even for a bank, serious, serious money." 2

   

Financial Workflows

Streamlined financial workflows are crucial for startups aiming to optimize their operations. Jason Calacanis emphasizes the importance of integrating financial tools to enhance visibility and control over cash flow 3. By eliminating third-party processing, startups can manage their finances more efficiently, reducing errors and speeding up processes. He states, "In the end, you're going to have a simplified workflow that makes you more precise, gives you more control, saves you time, and makes you faster than ever before." 4

   

Loyalty Programs

Loyalty programs in fintech, like those offered by Bilt, play a significant role in consumer engagement and business economics. Alex Wilhelm discusses how these programs attract financially savvy consumers who seek rewards but often do not generate the expected financial returns for companies 5. The challenge lies in balancing attractive rewards with sustainable business models. He points out, "The point is, those people are not going to leave a fat balance on their bill from Wells Fargo to generate the margin to pay for the rent rewards." 1