To enlighten investors on the impact of these breakthroughs and the opportunities they should create, we began publishing Big Ideas in 2017. This annual research report seeks to highlight

Customers For A Fraction 
Of Banks' Customer 
Acquisition Costs
Customer Acquisition Costs (CAC) Across Financial Products
Credit Cards
Bank Retail
Checking
Account
Brokerage
Platforms
Insurance
Platforms
Consumer
Lending
Digital Wallet
Range of CAC (USD)
$,1500
$250
$1,500
$350
$1,000
$750
$770
$480
$400
$250
$20
Credit 
Cards
Bank Retail
Checking 
Account
Brokerage 
Platforms
Insurance 
Platforms
Consumer 
Lending
Digital Wallet

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•
Source: ARK Investment Management LLC, 2020 based on data sourced from: Federal Deposit Insurance Corporation (FDIC) BankFind Historical Data.
33
Digital Wallets
Bank Branch Costs Are Rising While Their Utility Is Decreasing
As consumers have abandoned bricks & mortar in favor of mobile banking, bank branches have experienced increased occupancy 
expenses, which hit a record high of $568,000 in 2019.
$0
$100
$200
$300
$400
$500
$600
1935
1941
1947
1953
1959
1965
1971
1977
1983
1989
1995
2001
2007
2013
2019
Thousands, USD
Occupancy Expenses per Bank Branch in the US
2019: 
$568,000

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•
Forecasts are inherently limited and cannot be relied upon. 
For informational purposes only and should not be considered investment advice, or a recommendation to buy, sell or hold any particular security. 
Source: ARK Investment Management LLC, 2020 based on data sourced from: “US ABS Issuance and Outstanding.” Securities Industry and Financial Markets Association, 6 Nov. 2020, https://www.sifma.org/resources/research/us-abs-
issuance-and-outstanding/; “Board of Governors of the Federal Reserve System.” The Fed - Consumer Credit - G.19, https://www.federalreserve.gov/releases/g19/hist/cc_hist_sa_levels.html; “Consumer Credit Market Withstands 
Challenges as Accounts in Financial Hardship Begin to Decrease.” Transunion.Com, 20 Aug. 2020, newsroom.transunion.com/consumer-credit-market-withstands-challenges--as-accounts-in-financial-hardship-begin-to-decrease.
34
Digital Wallets
•
Digital wallets are entering the unsecured 
lending market, suggesting that traditional 
bank lending is unlikely to recover to the 
peak hit in 2019.
•
According to ARK estimates, bank interest
income on credit cards fell more than 10%, 
or roughly $16 billion in 2020 and is likely to 
drop more than 25% further, from $130 
billion in 2019 to $95 billion by 2025.
•
Digital lenders such as Square, PayPal, 
Affirm, Klarna and LendingClub are likely to 
take share from traditional banks.