Brex definitely has first mover advantage, but I question the moat with Fed Instant Payments coming around the bend in 2023 [1]. Other institutions (especially Chase based on Dimon's latest shareholder letter [2]) are aware of the existential threat fintechs pose to commercial banking institutions, and so it becomes similar to Netflix's effort to become HBO before HBO could become Netflix (if the intent is to become the go-to institution for business banking and treasury management). There is an incredible inertia in non-startup finance departments (from the CFO down), but perhaps Brex can overcome this inertia with their financial OS offerings if legacy banking can't get onboard with becoming engineering/technology first institutions (institutions who will face pressure to offer more value due to payment fee compression/revenue destruction and already low deposit interest income).
Exciting times ahead in fintech regardless of who wins.
Exciting times ahead in fintech regardless of who wins.
[1] https://www.pymnts.com/news/faster-payments/2021/five-banks-...
[2] https://reports.jpmorganchase.com/investor-relations/2020/ar...