INSUBCONTINENT EXCLUSIVE:
Eagle-eyed readers will recall that we mentioned M1 Finance earlier today in our look at a few trends in the fintech industry
reached the $1 billion assets under management mark, or AUM
Reaching AUM thresholds provides useful milestones that we can use to track the progress of various players in the fintech and finservices
worlds.M1 is an interesting company, bringing together a number of products to form a single platform
Still, for reference, Wealthfront, a roboadvisor, announced that it started 2013 with AUM of $100 million, and closed that year with $538
By mid-2014, Wealthfront had $1 billion AUM
Today it has over $20 billion.So, the numbers matter, and reaching thresholds can help us understand where a company is in its maturity
experience instead of a brick-and-mortar outlet
cohesive feature set.And one that lets M1 price its products lower as a group than it could individually
ability to price aggressively
services; Wealthfront, famous for its work in roboadvising, now also offers savings and borrowing capabilities.)Barnes said that M1 has long
This, in turn, means that M1 can have higher per-user sums on its books, which, it appears, helped the company reduce prices on a
going to be more economical
What it allows us to do is maintain lower margins per product, but have enough margin on the entire financial relationship that we can build
Robinhood-era, so the setup probably helps with attracting users.RevenueSumming so far, M1 runs a broad set of financial products,
attracting more dollars-per-user than other companies, perhaps, which lets it charge, in its view, lower prices.How low? Barnes told A
So every billion bucks on the platform will be 10 million dollars in recurring revenue
fees and provides interest on checking accounts, costing $125 yearly.Now that M1 is big enough to matter, it has to double, and then double
