The a16z Show The Rise, Fall & Reset of The Fintech Industry
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Dec 19, 2025 
Zach Perret, co-founder and CEO of Plaid, and David Haber, General Partner at Andreessen Horowitz, dive into the dramatic shifts in the fintech landscape. They discuss the rapid rise and fall of industry funding, the emergence of AI's role in fraud and underwriting, and how banks are now embracing external software. Zach shares Plaid's journey through these changes, focusing on innovations like better credit scoring and anti-fraud measures. The duo also predicts a future where automated fraud becomes a challenge as fintech adapts and evolves.
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Fintech’s Seasonal Boom-Bust-Maturation
- Fintech went through seasons: late spring (2018–19), explosive summer (2020–21), rapid fall and winter (2022–23), then thaw into spring (2024 onward).
- The cycle forced maturation: winners became stronger and the industry reconciled growth with responsibility.
Rates Pushed Fintech Toward Deposits
- Rising interest rates shifted many fintechs from origination-driven revenue to deposit-driven revenue and profitability.
- That pivot to deposits and full-stack models helped thaw investor interest in fintech.
Fintech Becomes Financial Services Everywhere
- Fintech is now largely synonymous with financial services and extends into nonbank companies via embedded finance.
- Large incumbents now view themselves as major fintech players and invest heavily in technology.