`Allocating capital and managing the risk on the debt side of our personal balance sheet is larger, more complex, and determines whether we reach our goals or how far away do we end up. This is primarily where we all need advice (human, bionic, hybrid) in the first place, and subsequently in the investment segment of our finances`

This is an excerpt from a post I wrote nearly 3yrs ago The vertical integration of SoFi has the core entry point right! One of the points I was making is that offering mortgages first and then expanding into wealth management, is the way to go during this digital transformation and cannibalization of several financial products. Simply because the value add of advice on the debt side is significant and easier for the end customer to understand.

Efi Pylarinou is the founder of Efi Pylarinou Advisory and a Fintech/Blockchain influencer – No.3 influencer in the finance sector by Refinitiv Global Social Media 2019.

Since then, the digital mortgage market has evolved – US players like Roostify, Mojo mortgages, or ElliMae – and several partnerships have been established. For example, Ally Financial partnered recently with digital mortgage disruptor Better.com; or HSBC with Roostify.

Since then, the market reality is that several Fintechs in the investment part (e.g. robo-advisors) have cannibalized products and services, while increasing customer acquisition costs. As a result, they have been forced to expand their initial laser focused offering. Which brings me to the recent announcement of Wealthfront, the digital-only standalone robo-advisor, that plans to add mortgages to its offering.

Wealthfront started on the asset side of our personal finances and is now enriching its offering on the liability side. Sofi did the reverse. Wealthfront, however, has been analyzing data for its clients around home pricings and mortgages, as part of their saving goals towards mortgage down payments. So Wealthfront is not starting from zero. They see demand (they always have been) on customers that are `Branch-Nevers` as they call them.

At the same time, Varo Money the mobile-only banking app (with no banking license yet) has been offering unbeatable free checking and high-yield savings accounts, and plans also to add mortgages and more once they get a banking license. Both Sofi and Wealthfront have added cash and savings accounts.

What a mashed-up market!

From unbundling, integrating, then re-bundling and consolidating. Over and over again.

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