Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Square Banking

squareup.com

Post reply on HN
Print view View original

51–60 of 174 posts

Re: Square Banking

#51

Post by hestefisk »

bingdig wrote: post #15

2021 is a great time to own a small regional / community bank. All the mature FinTech companies are trying to buy a bank to expedite the cumbersome bank chartering process (+ mortgage origination and servicing companies are too)

Indeed. And a good time to have a banking as a service business. Have a look at Cross River Bank. They have grown their balance sheet 3x in the last two years. It’s not just US though. In Southeast Asia same trend; big tech platforms like Grab and Shopee are buying small bank license holders on the cheap to start taking deposits and build their ecosystem on top.

Re: Square Banking

#52

Post by arkitaip »

danpalmer wrote: post #33

It's amazing to me how much of a better product can be created when everything is in one place. It's obvious that when you're charging customers and paying invoices through the same interface, that you'll have more visibility on your cash flow and it'll generally be easier to use, but this goes so much further. The reason those loans are easy is because Square know your history of charging customers. The reason they…

Maybe we can also start moving away from feature-limited Saas offerings that are so damn proud that they focus on One Thing And One Thing Only when customers want just one affordable app to handle all their work and not fifty-eleven ones that become crazy expensive.

Re: Square Banking

#53

Post by hestefisk »

afavour wrote: post #28
duxup wrote: post #26

>Square Banking >Square, Inc. is a financial services company, not a bank. Banking services are provided by Square’s banking affiliate, Square Financial Services, Inc. or Sutton Bank; Members FDIC. Um so they are insured by the FDIC? Am I doing business with Square, Square Financial Services, Inc., or Sutton Bank? Do I have any recurse when it comes to typical banking expectations / rules here when it comes to either…

Sutton Bank is a real bank with full FDIC insurance. Seems like Square Banking is just a pretty UI on top of that.

Sutton Bank is the deposit taking institution and therefore wear the customer / deposit risk. Pretty much everything from the payment rails and up appears to be Square.

Re: Square Banking

#54

Post by mattanimation »

afavour wrote: post #28
duxup wrote: post #26

>Square Banking >Square, Inc. is a financial services company, not a bank. Banking services are provided by Square’s banking affiliate, Square Financial Services, Inc. or Sutton Bank; Members FDIC. Um so they are insured by the FDIC? Am I doing business with Square, Square Financial Services, Inc., or Sutton Bank? Do I have any recurse when it comes to typical banking expectations / rules here when it comes to either…

Sutton Bank is a real bank with full FDIC insurance. Seems like Square Banking is just a pretty UI on top of that.

This really reminds me of how Simple was actually just a layer on top of BBVA who then ended up closing Simple and now BBVA has merged with another bank and is changing again.

Re: Square Banking

#55

Post by eggbrain »

While Square makes (more) sense to get into the banking game, I've noticed a lot of companies only tangentially related to finance doing similar things, and I wonder what it's indicative of:

- T-Mobile offers an exclusive checking account for their customers

- Credit Karma promoting their own debit card

- Robin hood doing "Cash Management"

- Coinbase offering a debit card with crypto rewards

Has something changed with the ecosystem in the past 5 years? I'm half expecting NYTimes to release a banking/checking account these days where you get rewarded with newspapers.

Re: Square Banking

#57

Post by tqx »

madeofpalk wrote: post #50
SippinLean wrote: post #48

Earlier quoted context omitted.

From TFA: > For instance, it is easy for a user to land at an awkward scroll position which leaves an item partially on-screen when panning. > To this end, this module introduces scroll snap positions which enforce the scroll positions that a scroll container’s scrollport may end at after a scrolling operation has completed. Which is exactly what this page is doing. > primarily a touch interaction It's exclusively a…

It might sound similar, but it's very different in practice.

Does this page enforce the scroll positions that a scroll container’s scrollport may end at after a scrolling operation has completed, in practice?

Re: Square Banking

#58

Post by nerdponx »

eggbrain wrote: post #55

While Square makes (more) sense to get into the banking game, I've noticed a lot of companies only tangentially related to finance doing similar things, and I wonder what it's indicative of: - T-Mobile offers an exclusive checking account for their customers - Credit Karma promoting their own debit card - Robin hood doing "Cash Management" - Coinbase offering a debit card with crypto rewards Has something changed wit…

I assume it's because being a bank allows you to invest the deposits and turn a profit.

Re: Square Banking

#59

Post by zonethundery »

eggbrain wrote: post #55

While Square makes (more) sense to get into the banking game, I've noticed a lot of companies only tangentially related to finance doing similar things, and I wonder what it's indicative of: - T-Mobile offers an exclusive checking account for their customers - Credit Karma promoting their own debit card - Robin hood doing "Cash Management" - Coinbase offering a debit card with crypto rewards Has something changed wit…

Its a function of the stability of the bank partnership model and the success of baas apis like galileo, combined with the economics of debit interchange for institutions under the Durbin amendment cap.

Partner banks get more deposits and use their fat interchange rates to attract the developers/promoters of new products.

Re: Square Banking

#60

Post by mittermayr »

MisterBastahrd wrote: post #32
dm8 wrote: post #27

0 overdraft fees. Yay. More like it. It will force major banks to rethink their overdraft fees as a revenue center. As someone who was not so well financially just a decade ago, overdraft fees seemed like penalty for being poor. When you are living paycheck to paycheck, you never know when your account will get overdrawn. And most evil thing was - bank will deny the charge because you didn’t have enough funds but wil…

Yeah, this is huge in an age where a lot of people are dinged through recurring subscriptions. You could rack up 5 or 6 charges and not even realize it, at which point you're out hundreds of dollars in overdraft fees.

I always struggled with this concept, why not stop at 0 when the account is overstretched? Here in Europe, for most people I would say, it's quite rare that the account goes to 0, and if it does, the transactions simply don't go through (unless it's a credit card). Isn't that asking for borrowing money at no fee? Don't get me wrong, I absolutely despise predatory bank charges, but wonder if that's a bit much to ask a a consumer (i.e. no charge for borrowing money I don't have?). Or is this just about the penalty fee for going into overdraft, and not the actual fee for loaning of money?
Post reply on HN