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Ketharaman Swaminathan

Ketharaman Swaminathan

  In his latest monthly newsletter, David Barrett, Founder CEO of Expensify, stated that Expensify is the only company that has succeeded with expense management software for SMEs. He was referring to the latest pivot to enterprises by Brex. Maybe SMEs ARE risky, expensive and difficult to serve? Looking left and right while crossing the road is a safety best practice or bias?? I've always wondered if skew is in the dataset and the analyst is merely surfacing the reality and not ating with any personal bias. I'm becoming more convined about that take after reading that SME lending has not changed in 30 years. If the bias was with banks, by now, alternatives to banks should have come up and grabbed the opportunity? Why has Brex pivoted away from SME??
Ketharaman Swaminathan

Ketharaman Swaminathan

  Despite tectonic changes in technology, consumer behavior, alternative payments, blah blah blah, credit card industry has maintained its 3-4% MDR (in unregulated markets) through its entire 70 year history. Why won't BNPLs be able to sustain their 4-6% MDR for a similar period? I'm not among those who predict that BNPL will achieve dominance. That said, through the last 35 years of observing emerging competition to credit card, BNPL is the only credit card competitor that I think has some chance of putting a slight dent on credit card volumes.
Dina Bharkhda

Dina Bharkhda

  This is fantastic news!! way to go.  
Chris Kelsey

Chris Kelsey

  Interesting piece.  Love Abba ref!

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