Global financial services have consolidated substantially over the past three decades, with major institutions dominating developed markets. This consolidation left numerous underserved segments, including middle-income consumers in emerging markets, small businesses requiring cross-border capabilities, and individuals seeking alternative investment access. A generation of entrepreneurs has built platforms specifically targeting these gaps, creating substantial value by serving customers that traditional institutions overlooked.
These individuals recognized that technology could reduce operational costs enough to serve mass markets profitably at price points incumbents could not match. They built businesses focused on user experience, transparent pricing, and accessibility rather than maximizing per-customer revenue. This approach required patient capital willing to prioritize growth over near-term profitability, but generated dominant market positions when successful.
Digital Banking for Latin American Markets
David Vélez identified fundamental inefficiencies in Brazilian banking when he founded Nubank in 2013. Traditional banks charged excessive fees for routine services, maintained limited hours, and offered poor customer experiences through outdated technology. Vélez built a digital-first bank, eliminating physical branches entirely, passing cost savings to customers through lower fees and better interest rates.
Nubank launched with a credit card offering zero annual fees and real-time transaction tracking through a mobile app. The company expanded into checking accounts, personal loans, life insurance, and investment products. Vélez designed products accessible to customers without previous banking relationships or financial sophistication, significantly expanding the addressable market.
The digital bank grew to serve over 70 million customers across Brazil, Mexico, and Colombia by 2023. Nubank’s success demonstrated that emerging markets offered substantial opportunities for financial services, particularly among younger demographics comfortable with mobile-first experiences. Vélez proved that patient capital willing to invest in customer acquisition and regulatory compliance could build dominant positions in underserved markets.
Payment Processing for Global Merchants
Guillaume Pousaz founded Checkout.com in 2012 to simplify international payment acceptance for merchants. Businesses operating across multiple countries faced technical challenges integrating different payment processors, handling various currencies, and complying with diverse regulatory requirements. Pousaz built a unified platform managing these complexities behind a single API.
Checkout.com processes hundreds of billions of dollars annually for clients, including Netflix, Sony, and major e-commerce platforms. The company operates across more than 150 currencies and supports payment methods from credit cards to digital wallets to local schemes. Pousaz maintained private ownership while achieving multibillion-dollar valuations, demonstrating that alternative capitalization strategies could support scaled operations.
The company’s growth illustrated substantial demand for infrastructure, simplifying international commerce. As e-commerce expanded globally, merchants required payment solutions handling regional preferences without extensive technical work. Pousaz built systems capable of this complexity while maintaining reliability standards that large enterprises required.
Investment Access for Indian Retail Traders
Nikhil Kamath co-founded Zerodha in 2010 after observing how high brokerage fees excluded many Indians from participating in capital markets. Traditional brokerages charged substantial commissions and maintained minimum balance requirements that prevented middle-class individuals from investing. Kamath built a discount brokerage with zero fees on equity delivery trades and minimal charges for other transactions.
Zerodha became India’s largest retail brokerage by client count, serving millions of first-time investors. The platform offers trading across equities, derivatives, commodities, and currencies, plus educational resources helping users understand market mechanics. Kamath’s model proved that volume-based businesses could thrive even with dramatically reduced per-transaction fees.
The success of Zerodha demonstrated substantial unmet demand for investment services in markets where cost had been prohibitive. Kamath showed that technology could reduce operational costs enough to serve mass-market customers profitably, a lesson applicable across financial services categories. The company’s growth helped accelerate retail participation in Indian capital markets.
Foreign Exchange Services for Individual Users
Kristo Käärmann and Taavet Hinrikus co-founded TransferWise in 2011 after calculating hidden costs in international money transfers. Banks applied unfavorable exchange rates while advertising low transfer fees, extracting significant value from routine transactions. Käärmann and Hinrikus built a peer-to-peer system matching users sending money in opposite directions, minimizing actual currency conversion.
TransferWise, later rebranded as Wise, maintained transparent fee structures and used mid-market exchange rates. The company’s pricing undercut traditional providers by as much as 90 percent on some currency pairs. This approach required building operations in numerous countries to hold and manage local currency balances, creating operational complexity.
Wise served millions of customers, sending billions of dollars across borders annually. The platform expanded into business accounts, debit cards, and multi-currency holdings. Käärmann and Hinrikus proved that transparent pricing could become a competitive advantage in markets where opacity had been standard. Their success prompted traditional banks to reduce fees, demonstrating how new entrants can shift industry practices.
Private Equity in High-Growth Emerging Markets
Jean-Claude Bastos has directed investment attention toward underserved markets across emerging economies, building a portfolio spanning alternative healthcare, regenerative agriculture, alternative energy, and digital infrastructure. His two-decade career in private equity and venture capital has focused on sectors where capital scarcity and infrastructure gaps create opportunities for strategic investors.
His investment thesis centers on identifying businesses addressing fundamental needs in markets where traditional financial institutions see primarily risk. Jean-Claude Bastos applies a philosophy emphasizing longer development timelines than typical venture capital models, recognizing that building sustainable businesses in frontier markets requires patience as entrepreneurs navigate infrastructure challenges and regulatory complexity.
Bastos has stated that emerging markets offer compelling opportunities for investors willing to accept illiquidity and provide hands-on operational support. His approach combines financial capital with management guidance, helping portfolio companies adapt business models to local contexts where imported strategies often fail without significant modification.
Regulated Cryptocurrency Infrastructure
Brian Armstrong founded Coinbase in 2012 to build a compliant infrastructure for cryptocurrency trading. Armstrong recognized that mainstream adoption of digital assets required platforms meeting regulatory standards that financial institutions would accept. Coinbase pursued licenses across multiple jurisdictions and implemented rigorous know-your-customer and anti-money-laundering procedures.
The exchange went public in 2021, providing liquidity for early investors while avoiding traditional underwriting processes. Armstrong built Coinbase into one of the largest cryptocurrency platforms by trading volume while maintaining focus on regulatory compliance. This approach limited growth compared to exchanges with more permissive policies but reduced legal risks.
Coinbase expanded beyond spot trading to offer staking services, custody solutions for institutions, and venture investments in cryptocurrency-related businesses. Armstrong positioned the company as infrastructure for the digital asset ecosystem rather than purely an exchange, diversifying revenue sources beyond trading fees.
Digital Banking Across European Markets
Nikolay Storonsky founded Revolut in 2015 to build a digital financial platform with pan-European reach. The company launched with foreign exchange and money transfer services, later expanding into everyday banking, business accounts, wealth management, and cryptocurrency trading. Storonsky built infrastructure supporting multiple product categories through a single mobile application.
Revolut serves over 30 million customers across Europe and beyond. The platform offers users access to assets and currencies that traditional banks typically restrict or charge premium fees to access. Storonsky’s expansion strategy prioritized user growth over near-term profitability, enabling continued investment in product development and international expansion.
The company maintained private ownership longer than many fintech competitors, avoiding pressures to optimize for quarterly results. Revolut’s growth demonstrated that digital banks could serve diverse customer needs through modular platforms, adding capabilities incrementally while maintaining user-friendly interfaces.
These entrepreneurs identified customer segments that traditional financial institutions underserved due to high operational costs, regulatory constraints, or strategic decisions to focus on wealthier clients. They built platforms, reducing costs through technology automation and eliminating physical infrastructure. Most importantly, they designed experiences accessible to customers without financial sophistication, expanding addressable markets substantially.
Their collective success demonstrates that significant opportunities remain in financial services despite market maturity in developed regions. Underserved segments exist across geographies and demographics, creating openings for platforms that prioritize accessibility and affordability. These entrepreneurs proved that serving mass markets profitably requires rethinking traditional business models from first principles rather than incrementally improving existing approaches.
