Interestingly some of the most impressive startups I see nowadays are entering heavily regulated spaces. There’s such an enormous moat when you make it through that it’s worth a shot, but it takes a founder willing to spend 80% of effort dealing w regulators and 20% w tech
Stripe didn’t have to fight with as much regulation as people believe IMO, but they did have to partner with banks. But that’s a good one. How many bank charters have been created in the past 15 years?
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Every fintech company and the unpredictability of CFPB rulings and actions. Non-debt financial instruments in the education space. FDA approval of anything even vaguely related to machine learning. Same with TILA and machine learning. Non-animal meats and like 10 agencies
Thanks. Twitter will use this to make your timeline better. UndoUndo
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it’s not a bad thing that they partnered with banks. Basic banking is a solved problem. Their innovation meets the demands of essential regs concerning ccard safety that probably < 0.11% of online merchants could implement truly securely.
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Not saying it is bad, just that they short circuited regulation. So why aren’t there new banks?
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Ally? SV Credit Union? (not super new) Basic banking: solved problem. The banks most needed IMO are in places overrun by check cashing/payday loan/rent-to-own joints. That will take a special kind of org. I’d love to start one. http://even.com seems to be in the space
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Those are not new banks, they’re new skins on old banks, which is a fundamentally different thing
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Why do we need another bank? I’m happy with my frumpy credit union. I put money in, they don’t lose it, they don’t try to sell me financial crap, when i need some cash, i get it from an ATM. It’s all good.
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The basic function of a bank should be no more exciting than the basic function of Stripe. I hire both companies to displace stuff that should never bring “surprise” to my life, so i can concentrated on the stuff that does, or that should.
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You literally just named an enormous problem a new bank could solve then said “why do we need a new bank?” in the next tweet
End of conversation
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