I really wonder what Kard long-term strategy is. I may be wrong but I don't believe there is an interesting market around banks and teenagers. The core business model of banking is based on loans (and I hope Kard isn't betting on a world where the European higher education system becomes as expensive as the anglo-saxon one). Thus if you can't make money on loans, then you try to make money on payments, which is a paytech model and not a banking one.
In my humble opinion, the only move they can make would be to acquire at a next to 0 CAC teenagers that will eventually become high net worth individuals / high consumers of financial services and products. In studies made by firms such as Exton Consulting, it is crystal clear that most of the revenue of insurers and banks come from a tiny portion of their clients (Pareto law). But these clients, once they are working and investing, have a huge CAC (several hundreds of euros). So Kard endgame could be to build a very attractive customer base that they would later sell to an incumbent.
Great memorandum!
I really wonder what Kard long-term strategy is. I may be wrong but I don't believe there is an interesting market around banks and teenagers. The core business model of banking is based on loans (and I hope Kard isn't betting on a world where the European higher education system becomes as expensive as the anglo-saxon one). Thus if you can't make money on loans, then you try to make money on payments, which is a paytech model and not a banking one.
In my humble opinion, the only move they can make would be to acquire at a next to 0 CAC teenagers that will eventually become high net worth individuals / high consumers of financial services and products. In studies made by firms such as Exton Consulting, it is crystal clear that most of the revenue of insurers and banks come from a tiny portion of their clients (Pareto law). But these clients, once they are working and investing, have a huge CAC (several hundreds of euros). So Kard endgame could be to build a very attractive customer base that they would later sell to an incumbent.