Some Fintechs Trade Prospecting for Plumbing

Snapshot: Fintechs once obsessed with stealing bank customers are now shifting to building the pipes that keep finance running.

Customer acquisition costs in consumer fintech often range from hundreds to thousands of dollars per user, with long payback periods and constant churn risk.

By contrast, infrastructure generates revenue on transaction volume, scaling with enterprise clients who integrate once and stay for the long haul.

Coinbase now powers J.P. Morgan’s deposit token pilots, SoFi is routing remittances through Bitcoin’s Lightning Network, and Chime has moved from mass acquisition to deepening customer ties with credit products and early-pay services. The appeal is twofold: stronger economics and regulatory credibility gained through partnerships with established banks.

The shift has redrawn competition lines. It’s no longer fintech vs. banks, but companies that own customer relationships vs. those that control the systems beneath them. For many fintechs, trading prospecting for plumbing may be the most sustainable path to staying indispensable in the financial system.

Full story: Tearsheet