The Formula for Great Companies in FinTech

In the FinTech industry, a combination of underwriting advantage and distribution advantage is crucial for creating successful companies. Companies like Square and Affirm have excelled in this by focusing on these two criteria. Developing proficiency in underwriting and establishing a unique distribution model can create a competitive advantage and lead to exceptional growth. Identifying and investing in companies that possess both operating and distribution advantages can result in successful investments, as seen with the example of Avant in the financial services sector.