Social Finance
Collab #1 | Marie Dollé
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Hi, this is Clément from HUB612👋
Welcome to all the new followers and hello to everyone!
This week I’m inviting you to read Marie Dollé ’s issue on her substack (In Bed With Tech [FR] or In Bed With Social [ENG]). She writes every week about trends in digital media, and this week we’ve co-writted an issue about Social Finance.
Hereunder, please find a short brief about why this topic is sooo hot at the moment.
Community driven & cool: SocialFinance
A Mindset Reset
We used to think that talking about finance was taboo. But there’s a lot of signals that seem to indicate a change in attitudes towards money and liberation of speech:
People have been talking openly about their salaries (huge buzz of #KnowYourWorth), family expenses, student debts (viral spread in the US at the end of 2020), or income obtained through side projects (Snowball)
Tools such as TillerHQ promote 30-day challenges to regain control over your finances. Others such as MoneyUnder30 encourage savings or advise on how to avoid future financial risks.
Investors are betting massively on startups targeting financially unacculturated audiences. GoHenry is teaching children with its card and pocket money management application. While Eversafe fights against confidence abuse/scamming, leading to financial exploitation of the elderly.
Wells of financial knowledge at your fingertips
Where should I invest my money? How do you buy crypto-currencies? Explain a bear market? Why is compound interest so powerful? What is Decentralized Finance?
Neophytes ask themselves a lot of these questions, and those unknowns are often a significant barrier to getting started. Yet, Internet users have converged, and communities have formed around different financial topics: investment, retirement, trading, cryptocurrency.
Personal finance management (PFM) communities have taken off on multiple formats: Podcasts, articles, Slack, newsletters, Instagram accounts, and others .. (So Money, Snowball, Financial Freedom) Even for professionals (Agicap's Cash is King community).
How can I not mention Reddit, where SubReddits such as r/wallstreetbets have increased dramatically (778k Jan 2020 to 8.6M Jan 2021), even now being presented as a Bloomberg terminal.
Discussion groups on Telegram and Discord are discreet but they are on the rise! Go to InvestingStock to discuss trading concepts, EarningsFly to analyze a company's financial statements.
This craze has been clearly identified by fintech, who are now positioning themselves as cool players on the market, as opposed to traditional players. From marketing familiarization to message simplification to a seamless and frictionless digital experience, startups are transforming our relationship with money.
Check Mon Petit Placement making tiktoks with its customers
Kard distills memes on Instagram
They are called fin-fluencers
This community power is gradually infiltrating the social landscape through existing or dedicated networks, or even in a hybrid way by creating strong synergies.
Laguna is an OnlyFans but for investment portfolios, allowing users to generate a dedicated page that can be shared on different social networks
Public is a social investment network where members can hold fractions of shares, follow popular creators, and share ideas within a community of investors.
Meemo is a gamified digital wallet that provides personalized insights and rewards. It also provides recommendations and social validation from your friends by collecting their purchase history and sharing it with you.
On their favorite social platforms (Tiktok, Instagram, Twitter) much Gen Z shares massively with #finance #personnalfinance. Furthermore, a growing number of accounts explain how finance works. Slowly but surely, finance is getting cool, and brands understand this very well and use it as a lever to diversify their activities:
Cash App, Square's mobile payment application, launched - like startup Fast - a trendy and fashionable apparel line designed for Gen Z.
Teens bank Step, repeatedly calls on TikTok superstar Charli D'Amelio to carry out dedicated marketing operations.
The social empowerment
The rise of the Passion Economy is also proving to be a game-changer. Bringing new fintech tools (stand-alone or embedded) to enable creators to become more professional and better monetize their know-how.
Karat is a bank card reserved for top influencers and has the particularity of being granted according to social metrics (likes, followers, etc.)
Indeed, it is not just a question of new tools - however innovative they may be. The revolution that is about to take place will profoundly change our business models.
What used to be participatory financing (e.g. crowdfunding on Kickstarter projects) and allowed to collectively finance an idea, is gradually transforming towards co-ownership models. This is the case of Fairmint, which allows a startup (/creator) to offer its users the possibility to support the company by investing in it.
Bundles are now making their way in the Passion Economy. The road to the creators' 1000 true fans is built by merging communities. This is what Divinations and Superorganizers are trying to do with "Every" by offering a common newsletter.
Although the signal appears weak for the moment, it is nevertheless perceptible and hints at the rise of Human IPOs, investment in people! In concrete terms, a creator is perceived as a stock that gains in value as it becomes known
Shall we work together?
This year I plan on co-writing more. In my opinion, it serves both writers and the delivery is 10 times more interesting/insightful.
Feel free to reach me to:
Discuss fintech market, business model, regulation, ..
Co-write on a fintech/insurtech related topic!
To improve my work, please tell me how you felt about this issue!
Previous issues (wait, there’s more!)
💵 Cash Management for SMEs | Investment Memorandum #2 Agicap
✈️ Sorry, that’s excluded | Market Review #8 Travel Insurance
🖼️ Culture is the new asset | Investment Memorandum #6 MasterWorks
See you next week 👋
📧 I’m clement.parramon@hub612.com and @cparraam is my Twitter
Ps. If you like what I’m doing with Parram please feel free to share it on your social network of choice. Also, I’d appreciate it if you forwarded this newsletter to a friend you think might enjoy it ✌️