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?
Are you trying to be intentionally dense and obtuse? Try googling “why aren’t banks being started in the US” or “rate of bank creation in US over time.” You are trying to defend a point without having any idea what the hell you’re talking about, which speaks volumes
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The rate of bank creation will answer nothing about “why”. I did google and just answered you with the articles I found: banking generates less profit now than ever, so it’s not attractive AND there is more regulation so it’s more annoying.
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So banks magically became less profitable in 2008 for no reason having to do with Dodd-Frank or regulations at all? That’s the position you’re taking given your 30 seconds of research?
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No actually I’ve spent in aggregate maybe 6 months full-time reading up about banking between 2005ish and again recently, thinking about this banking-for-the-unbanked problem. and 30 seconds just now. i figured we could overlay on an existing small bank.
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You spent six months full-time and didn’t know about Dodd Frank or why there aren’t new banking charters?
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my long project was pre-2010 and the post-2010 work was focused on the customers, not the bank.. again, i was thinking less about creating a bank for a low-margin market (sounds messy) and more about re-skinning an existing bank for a specialty market, if that market even existed
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i think http://even.com is walking that fine line. the “problem” of market entry for that demographic, as you know, is as much about education about a new way of handling money, as it is about access to a physical branch. It needs both. Also it’s big.
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but hey, we have some success - we’ve identified an example of a regulation that is at least not entirely beneficial to the public (maybe it’s helping prevent more meltdowns? I dunno)… that could be fixed.. that has prevented new entrants to the market…
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Every regulation will prevent negative scenarios. It just won’t necessarily offset the cost of what could happen without it. Not enough consider the lost potential upside in trying to protect everything. How many fintech startups don’t exist *because* you cant create a bank?
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