Goldman Sachs’ CEO David Solomon talks fintech valuation
Fintechs ‘project a view of the future,’ Solomon says
Many fintechs have not yet reached a point of long-term viability, and very few are actually making any money, Goldman Sachs Chairman and Chief Executive Officer David Solomon said this week. 
The outlook of fintechs, both current and prospective, will center around their ability to convert their guiding business frameworks into models that support durability and sustainability in their sector, Solomon told CNBC on Tuesday.
“I think that fintech valuations, at the moment, project a view of the future because there are very few fintechs that actually make money at this point in time, to the degree that some of these platforms turn out to be sustainable platforms that really have business models where they can make a lot of money,” he said. “To the degree that they can’t convert to a business model that can actually make money, they’ll be absorbed.”
Both institutional firms and upstart organizations will play a role in how the fintech landscape evolves in the coming years, Solomon said.
“There’s a big disruption going on in the digitization of financial services and how they’re delivered, whether it’s the institutions or individuals, and I think the incumbents are going to play a big role in that and I think upstart fintechs are going to play a big role in that.”
Solomon also discussed the effect of cryptocurrency on the broader financial services and technology sphere. The focus should go beyond coin and asset speculation, and center instead on the ways cryptocurrency and related technologies can impact how financial services are leveraged and delivered, he advised.
“The key thing is how can blockchain — or other technologies that are not developed yet — accelerate the pace of the digitization of the way financial services are delivered,” Solomon said.
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