Turner Novak

But banks aren't valued based on the number of account holders

If a bank is entirely digital and you have data like LTV, CAC, etc that helps you project future cash flows, couldn't you value it based on # of accounts?

Turner, where are the legacy banks here? What I see and actually agree with is that private markets seriously overvalued neo-banks and are in for a bit surprise when they realize that neo-banks can only earn money the same way that legacy banks do (mostly).

The legacy banks are Chase, Wells Fargo, US Bank, PNC, and Bank of America. I agree there’ll be pressure on some of this first wave of neobanks, but also think investors don’t fully appreciate Venmo and Cash App yet. I think have the most staying power of the comps in that chart

I’m all for SQ/PAGS/MELI getting those 66x valuations but imagine someone will chime in about P/B valuations. Banks high bc tremendous amount of invested capital (loans)

Wonder if rise of digital wallets / banks ease consumers ability to move funds/ have multiple accts which would lower that value per customer. Or if it maintains customer lock in.

Or are banks account holders overvalued and we’ll see this come down over time

Probably somewhere in the middle! :)