I called it fintechnolization: “a construct that every digital platform must have a maturity state of offering a fintech solution. I had watched all great digital platforms on how they ended up providing fintech solutions even when they began in an unrelated sector.” Today, we’re reading that Twitter has started that translation by adding a financial service component.
“Twitter has entered into a partnership with eToro, a social trading company, to offer financial services on Twitter, suggesting that Elon Musk is setting off his ambition to make the microblogging app a big financial hub. eToro revealed the move in an interview with CNBC, saying the partnership will allow Twitter users to access stocks, cryptocurrencies and other financial assets.”
“As we’ve grown over the past three years immensely, we’ve seen more and more of our users interact on Twitter [and] educate themselves about the markets,” Yoni Assia, eToro’s CEO, told CNBC.
“There is very high quality content, real-time content on financial analysis of companies and what’s happening around the world. We believe this partnership will enable us to reach those new audiences [and] connect better the brands of Twitter and eToro.”
Twitter has already transmuted into X Corp and has started executing a new playbook which will make the microblogging company to become an operating system of digital mobile economy, enabling payment, booking for events, and broad buying and selling of items.
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In business, the greatest innovation happens in the business model phase because the whole constellation of organizing factors of production is encapsulated on how to capture value. Elon Musk understood that depending on adverts for a text-based product is challenging (people have to click to be served and that is a lot of work); so, he is expanding the playbook via subscriptions and now fintechnolizing the core DNAs of Twitter. Twitter 2.0 looks promising.
The financial sector is evolving rapidly:
When U.S. banks release their first-quarter earnings in the coming week, analysts expect to see the steepest deposit decline of the past decade, Bloomberg reports. According to estimates, deposits at JPMorgan Chase, Wells Fargo and Bank of America could be down as much as $521 billion from a year ago — the result of consumers’ waning trust in the banking system, following two high-profile bank failures, and savers’ desire for higher yields amid rising inflation.
Asked about Berkshire Hathaway’s sales of bank stocks, CEO Warren Buffett said more banks are likely to fail — which should worry shareholders but not depositors: “Nobody is going to lose money on a deposit in a U.S. bank.” Buffett also said he is cooling on the banking sector but not on Bank of America, where he remains the largest stakeholder.
Meanwhile, Twitter 2.0 is expanding with the re-launch of its creator subscription program which will provide a means for users to monetize their tweets, and build a business in the app. Substack may not be laughing on this Elon Musk playbook which can go directly at the heart of Substack’s core business of subscription-based blogging.
Apply to offer your followers subscriptions of any material, from longform text to hours long video!
Just tap on “Monetization” in settings.
— Elon Musk (@elonmusk) April 13, 2023
Comment on Feed
Comment 1: Twitter partnering with eToro and I think it’s pretty exciting news! It’s great to see social trading platforms gaining more recognition and popularity in the industry. I’m curious to see how this partnership will develop and what kind of impact it will have on both companies. Have you had any experience using eToro or similar social trading platforms before? I’d love to hear your thoughts on the topic.
My Response: eToro will have new 300m users. That is huge. Twitter users will not need to leave Twitter to pay for things since most of those things are discovered in Twitter. Why find a trending stock on Twitter and go to Robinhood to buy it when Twitter can allow you to do the same right there? This is a symbiotic playbook and it is significant!
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