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No one is disrupting banks – at least not the big ones

popularfintech.com

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Re: No one is disrupting banks – at least not the big ones

#61

Post by RestlessMind »

scarface_74 wrote: post #55
dylan604 wrote: post #45

Earlier quoted context omitted.

if i transfer money from one bank's account to another, it takes minimum of 48 hours if I make the request before 3pm cutoff time. Day 1, the transfer request is made at 1pm. Day 2, the money is no longer available in the sending account yet not in the receiving account. Day 3, the money is available in the receiving account. If I do it after 3pm, the request is not placed until Day 2. Why? WTF does a computer have a…

Zelle is run by the banks and transfers are instant and free. https://www.zellepay.com/faq/how-long-does-it-take-receive-m...

Zelle has a limit on the amount I can transfer, especially for new contacts. And it is precisely new contacts where I need to make a big payment, latest example being the contractor to remodeled my kitchen and didn't want credit card payment for some reason.

Re: No one is disrupting banks – at least not the big ones

#62

Post by dylan604 »

RestlessMind wrote: post #61
scarface_74 wrote: post #55

Earlier quoted context omitted.

Zelle is run by the banks and transfers are instant and free. https://www.zellepay.com/faq/how-long-does-it-take-receive-m...

Zelle has a limit on the amount I can transfer, especially for new contacts. And it is precisely new contacts where I need to make a big payment, latest example being the contractor to remodeled my kitchen and didn't want credit card payment for some reason.

> didn't want credit card payment for some reason.

i'm guessing 3.5%+ is the some reason

Re: No one is disrupting banks – at least not the big ones

#63

Post by poisonborz »

What do we understand under "banks"? If keeping with the simply notion of "stores funds and provides debit cards", the most common usage in EU, especially east, banks were deeply disrupted. Revolut and Wise took a large segment of the youth, who now also got hooked on more services like savings accounts and stocks. They have startup-like culture while being registered as standard banks. Obviously their services, quality and support are lightyears ahead of any traditional financial institution.

Re: No one is disrupting banks – at least not the big ones

#64

Post by bryanlarsen »

m101 wrote: post #32
picafrost wrote: post #7

In many cases the start-ups that disrupted entrenched big players did so by skirting the existing law and regulations the big players have to abide by and gaining market share before regulators could catch up to them. Maybe I simply lack vision but I don't think this behavior maps well into the fundamental day-to-day livelihoods of every day people. Certainly I am not willing to risk my finances for marginally increa…

This. Regulation has been set so high on banks that it makes it extremely difficult for new players to compete. The reasons given for regulation are: - protection from failure because of inability to not bail them out (and it has done a good job of this by and large, with some obvious risk oversights - e.g. silicon valley bank) - money laundering regulations The real corruption/monopoly in financial services that nee…

The big problem with amex/visa/mastercard is that it's a three sided market.

So make it a 2 sided market, unify the processor into one of the sides. In other words, either a merchant co-operative or a consumer co-operative. In this case, a merchant co-operative seems a natural fit. The merchants jointly own the co-op, and get a refund of their fees proportional to the profit of the co-op.

And you get the consumers on board the standard way: by bribing them. So something like a 2% rebate. So the merchant fees stay at a similar rate, but the merchants win in other ways because they own the processor.

Nobody's going to become a billionaire starting a co-op, but an executive in a successful financial co-op would pull in a multi-seven figure salary, which should be sufficient motivation to interest the startup folks.

And Y-Combinator would have to loan money to such a startup, they couldn't buy in. But it's in their interest to do so, given how much of the Y-Combinator portfolio is dependent on credit cards.

Re: No one is disrupting banks – at least not the big ones

#65

Post by Red_Comet_88 »

danielmarkbruce wrote: post #34
Red_Comet_88 wrote: post #3

No one is disrupting banks because the mega banks have the sole power of creating credit out of thin air, and no upstart fintech company has this power. To gain this power requires the creation of a bank, which as you can imagine, is probably the most gate-kept activity on earth. Andreesen talked about this in his Rogan appearance. The banks and gov brought the hammer down on crypto because it was a legitimate threat…

Getting a banking license in the US at least is totally doable and lots of banks are created de novo every year. As another commenter noted, anyone can create "money out of thin air". Come to my corner store and buy an apple on credit. Poof! Credit was the original money, made out of thin air, and can be by anyone.

Can your corner store credit be used to pay taxes? How long will your corner store survive if the IRS found out you were processing transactions in your own currency?

Re: No one is disrupting banks – at least not the big ones

#67

Post by scarface_74 »

dylan604 wrote: post #66
scarface_74 wrote: post #60

Earlier quoted context omitted.

You’re right, these are the only banks that support Zelle https://www.zellepay.com/get-started

i hope you get paid for all of your shilling

You just can’t admit you are wrong can you? Zelle is free, supported by almost every bank in the US - I’m sure you will find one obscure credit union in East MiddleOfNowhere South Dakota who doesn’t support it - and it’s instant

Re: No one is disrupting banks – at least not the big ones

#68

Post by dylan604 »

scarface_74 wrote: post #67
dylan604 wrote: post #66

Earlier quoted context omitted.

i hope you get paid for all of your shilling

You just can’t admit you are wrong can you? Zelle is free, supported by almost every bank in the US - I’m sure you will find one obscure credit union in East MiddleOfNowhere South Dakota who doesn’t support it - and it’s instant

you can't just admit you don't know wtf you are talking about

checks are a valid form of payment. if you receive one you have to be able to deal with it. some checks are too large for deposit via app. as someone else pointed out, zelle has limits that make sending large payments problematic. receiving a single check is much easier.

" supported by almost every bank in the US -" thanks for proving the point though

Re: No one is disrupting banks – at least not the big ones

#69

Post by scarface_74 »

dylan604 wrote: post #68
scarface_74 wrote: post #67

Earlier quoted context omitted.

You just can’t admit you are wrong can you? Zelle is free, supported by almost every bank in the US - I’m sure you will find one obscure credit union in East MiddleOfNowhere South Dakota who doesn’t support it - and it’s instant

you can't just admit you don't know wtf you are talking about checks are a valid form of payment. if you receive one you have to be able to deal with it. some checks are too large for deposit via app. as someone else pointed out, zelle has limits that make sending large payments problematic. receiving a single check is much easier. " supported by almost every bank in the US -" thanks for proving the point though

Yes, I’m sure you can find some obscure bank where it’s not supported, can you find at least 5 and tell me what percentage of people it affects?

I can’t think of one scenario where someone would be willing to take a large paper check in 2025.

You would actually accept a paper check from someone over $10K?

Re: No one is disrupting banks – at least not the big ones

#70

Post by kdmtctl »

perrygeo wrote: post #27
Red_Comet_88 wrote: post #3

No one is disrupting banks because the mega banks have the sole power of creating credit out of thin air, and no upstart fintech company has this power. To gain this power requires the creation of a bank, which as you can imagine, is probably the most gate-kept activity on earth. Andreesen talked about this in his Rogan appearance. The banks and gov brought the hammer down on crypto because it was a legitimate threat…

> mega banks have the sole power of creating credit out of thin air Amazing that more people don't know this. Most people will insist until their face is red that bank credit is a "loan" with equal debits and credits on both sides of the balance sheet. Wrong. The borrower's bank account goes up. And the bank's balance sheet goes up (the loan is an asset). Viola, new money.

You can't do this indefinitely. There a lot of risk management rules and capital requirement ratios which dictate how much money you can make of "the thin air". Also you should have enough liquidity to let the customer transfer the borrowed amount outside to actually use it.
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