Eisman Sees Fintech as a Risk to Banks Below the Top 5

The video discusses the real estate market, focusing on Zillow's shift from an internet platform to a financial services company. It highlights the impact of this transition on the company's financials and the broader market. The discussion then shifts to the challenges banks face in adapting to fintech innovations and competition from tech giants like Facebook and Google. The video concludes with insights into the financial strategies of large banks and the risks faced by smaller banks.

What was a key factor in the market's reward for companies like Zillow between 2015 and 2018?

• High capital expenditure

• Low free cash flow

• High free cash flow with low capital expenditure

• Focus on traditional business models

What major business shift did Zillow announce last year?

• Investing in generating mortgages and home flipping

• Expanding its internet platform

• Reducing its tech investments

• Focusing solely on real estate listings

How did Zillow's EBITDA estimates change for 2019 due to its new business model?

• Dropped to a range of 0 to 75 million

• Remained stable at $300 million

• Increased to over $500 million

• Increased to over $400 million

What is a significant concern for large banks regarding fintech?

• Lack of customer interest

• Threat from tech giants like Facebook and Google

• Competition from small startups

• High operational costs

Why are banks outside the top five at risk in the fintech landscape?

• They have outdated technology

• They can't afford large tech investments

• They have a smaller customer base

• They focus too much on traditional banking