No one is disrupting banks – at least not the big ones
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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
#2This implies someone can take deposits and issue loans in a "better" way, when the main feature of this type of business to customers is showing up with extremely low risk of losing deposits, not innovation.
Credit cards are not taking deposits and issuing loans in a traditional sense, they are fee generation machines that are externalized which would not generally be "traditional banking".
Re: No one is disrupting banks – at least not the big ones
#3No 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 to the banking cabal which runs the American Empire.
Re: No one is disrupting banks – at least not the big ones
#4No 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…
Yes and crypto doesn’t have any inherent risk like a sitting President creating a crypto currency where he has 80% of the currency, will probably make a half billion dollars and then do a rug pull.
https://fortune.com/2025/01/22/donald-trump-net-worth-memeco...
Re: No one is disrupting banks – at least not the big ones
#5This implies someone can take deposits and issue loans in a "better" way, when the main feature of this type of business to customers is showing up with extremely low risk of losing deposits, not innovation. Credit cards are not taking deposits and issuing loans in a traditional sense, they are fee generation machines that are externalized which would not generally be "traditional banking".
There are other banking models that are needed. Look into Custodia Bank’s model (SPDI). Full reserve system meant to backstop high risk (but legal) businesses. They went through a multi-year lawsuit around the start of 2020 with the fed who didn’t want them to exist, ultimately lost.
Re: No one is disrupting banks – at least not the big ones
#6No 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…
Yes and crypto doesn’t have any inherent risk like a sitting President creating a crypto currency where he has 80% of the currency, will probably make a half billion dollars and then do a rug pull. https://fortune.com/2025/01/22/donald-trump-net-worth-memeco...
That’s the thing I can’t ever come to understand about crypto. It’s purely about perception of value. At least with some precious metal, it has a floor value as a function of its practical uses and abundance.
Which leads me to believe that the only thing that could be honestly said is that a crypto is purely about winners and suckers and timing.
Re: No one is disrupting banks – at least not the big ones
#7In 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 increased convenience or marginally lower fees.
Re: No one is disrupting banks – at least not the big ones
#8What isn’t the bank doing for me that is in need of “disruption”?
High Yield Savings Accounts? Amex offers a HYSA that is 3.8% vs LendingClubs 4.5%. How many people have enough money in savings to make the difference worthwhile and make them willing to trust a non traditional bank? I have a year’s worth of expenses in mine (in addition to retirement savings) and I wouldn’t even bother.
My bank is there to accept my money and let me pay stuff with it.
Re: No one is disrupting banks – at least not the big ones
#9I don’t think disrupting banks is even possible. The time, money, and energy required is simply not realistic. There’s so many disrupt-able industries out there and I’m not even sure banking is the most beneficial one to tackle.
It’s a realistic Star Wars story where the Empire always wins because… well it’s the fucking empire. They didn’t get there by losing.
Re: No one is disrupting banks – at least not the big ones
#10Earlier quoted context omitted.
Yes and crypto doesn’t have any inherent risk like a sitting President creating a crypto currency where he has 80% of the currency, will probably make a half billion dollars and then do a rug pull. https://fortune.com/2025/01/22/donald-trump-net-worth-memeco...
That’s the thing I can’t ever come to understand about crypto. It’s purely about perception of value. At least with some precious metal, it has a floor value as a function of its practical uses and abundance. Which leads me to believe that the only thing that could be honestly said is that a crypto is purely about winners and suckers and timing.
In this specific case its also about buying access, so I doubt he'll rug pull, he can just direct the access requests to buy something.