Uhmm... isn't that what crypto is basically?
Per Mark Marc Andreessen the Biden admin tried to shut down crypto entirely But with the new administration we'll hopefully see growth and real competition to the old banks.
No one is disrupting banks – at least not the big ones
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Re: No one is disrupting banks – at least not the big ones
#262Uhmm... isn't that what crypto is basically? Per Mark Marc Andreessen the Biden admin tried to shut down crypto entirely But with the new administration we'll hopefully see growth and real competition to the old banks.
I’m not being a troll I’m seriously asking - how does crypto replace banks? Am I going to get a mortgage in BTC? If narrow banking, why give them my btc at all instead of holding myself? If not narrow banking then they are lending out my btc? Does that even work on blockchain? How do you do fractional reserve lending with a deflationary and one of one asset?
Re: No one is disrupting banks – at least not the big ones
#263The most interesting tech company in the banking to me is Column[0]. No affiliation but it caught my eye when the launched. Admittedly it still feels abstract to me, but the value proposition of having every capability supported by an API (like AWS's methodology of having all services be API first) on top of an actually chartered bank seems perfectly fitted for the creation of banking services that are significantly…
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Re: No one is disrupting banks – at least not the big ones
#264The products being pointed out in this article as an attempt to disrupt banks seem to be basically the same product for a different price. Like, a high-yield savings account is just a savings account with a better price, right? How do you disrupt an industry by selling the same products? The advantage of startups is that they're more nimble, can pivot to fit the market better, and can adapt to customer requests faste…
This is a very US centric article, a lot of the disruptions listed are incumbent 'big bank' products in other jurisdictions. I feel the lack of adaptability is likely a result of US market conditions/regulations rather than lack of innovation.
US Banks are much worse at serving common people than many other old big banks around the world, certainly compared to Germany's banks for example.
And yes it is thanks to a byzantine system of history, regulations and very few Americans travelling abroad to experience radically better systems.
Re: No one is disrupting banks – at least not the big ones
#265The products being pointed out in this article as an attempt to disrupt banks seem to be basically the same product for a different price. Like, a high-yield savings account is just a savings account with a better price, right? How do you disrupt an industry by selling the same products? The advantage of startups is that they're more nimble, can pivot to fit the market better, and can adapt to customer requests faste…
Finance is heavily regulated.
Disrupting a heavily regulated market is usually called ‘racketeering’ or ‘organized crime’.
Re: No one is disrupting banks – at least not the big ones
#266I’ve seen plenty of attempts to disrupt the big banks that are quickly bought by the big banks if they develop traction.
You see the same with big tech.
To get real disruption we need founders and investors willing to play the long game.
Re: No one is disrupting banks – at least not the big ones
#267The products being pointed out in this article as an attempt to disrupt banks seem to be basically the same product for a different price. Like, a high-yield savings account is just a savings account with a better price, right? How do you disrupt an industry by selling the same products? The advantage of startups is that they're more nimble, can pivot to fit the market better, and can adapt to customer requests faste…
Finance is heavily regulated. Disrupting a heavily regulated market is usually called ‘racketeering’ or ‘organized crime’.
Regulation is the racketeering. The central ringleader is the fed, who 'ease' money into thin air, bypassing the pesky annoyance of going around and collecting taxes to fund their private and public benefactors.
Re: No one is disrupting banks – at least not the big ones
#268Earlier quoted context omitted.
And fiat currency isn't purely about perception of value? Just as not all crypto is equal, the Zimbabwean dollar isn't remotely like the Swiss frank, just as bitcoin isn't remotely like hawktua.
> And fiat currency isn't purely about perception of value? Of course not. I don't know the laws of the country you live in, but in the US, the dollar is always acceptable as the payment of a court judgement and for the payment of taxes. That's not perception of value, that's value. All money is just IOUs, but getting an IOU from your landlord is different than getting an IOU from a stranger. You will have to pay you…
> The reach of crypto, outside of fraud and government graft (which is real value) is simply the reach of crypto marketing.
Except when your government is not trustable and you have to find a way to store and transfer value in an independent and anonymous way.
Re: No one is disrupting banks – at least not the big ones
#269Earlier quoted context omitted.
This is a very US centric article, a lot of the disruptions listed are incumbent 'big bank' products in other jurisdictions. I feel the lack of adaptability is likely a result of US market conditions/regulations rather than lack of innovation.
US Banks are much worse at serving common people than many other old big banks around the world, certainly compared to Germany's banks for example. And yes it is thanks to a byzantine system of history, regulations and very few Americans travelling abroad to experience radically better systems.
FATCA makes Americans pariahs at foreign banks. I would love to store cash outside US jurisdiction but it is a compliance nightmare usually only worth it for high net worth clients. We know better systems exist, we just often can't use them even when we live overseas.
Crypto is the last offshore banking for the middle class. It essentially took over right when FATF eliminated banking privacy and bearer shares -- which IMO is no mere coincidence.
Re: No one is disrupting banks – at least not the big ones
#270Does the article blatantly ignore the basic principle of fractional reserve?
A tiny deposit for a bank to hold means 7x more money to loan out, or something?