Here's Why nCino Can Build a Strong Moat
Nearly every business wants to develop a competitive moat -- an advantage that is difficult to replicate, making it tough to unseat the company from its place in the market. Those that succeed in that tend to gain -- and hold -- strong market shares in their industries, allowing them to generate strong sustainable earnings.
One business I think has the potential to develop a strong moat is cloud-based banking software company nCino (NASDAQ: NCNO). Here's why.
It is difficult to succeed in the banking technology world. Financial institutions are known for their conservativeness, and replacing their core technology is a heavy lift because even as they bring new systems online, they still need to be up and running at all times for their customers. That's why so many banks still use outdated legacy systems and lots of manual processes. But between the long-term impacts of the pandemic and the general industry trends, updating technology is no longer an "if" but a "when" for most of these institutions -- and NCino could play a big role in these transformations.
Source Fool.com
