There is some brutal competition for retail deposits right now and I think the banks are getting sophisticated about balancing interest rates and consumers’ who satisfice versus those who optimize. They can probably afford to lose the latter.
Boomers and yuppies, but broadly speaking the American middle class at any given time has a lot of cash and is not very aggressive about optimizing it. This is a perinneal low-cost source of deposits for banks.
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Do you think mobile banks a good optimization solution, or is there something better?
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From user’s perspective or from hypothetical entrepreneur’s perspective? I think most consumers of banking services who’d take advice from me would get most of the juice for very little squeeze by getting one bank with a competitive rate and a mobile app, yeah. Punt on #2.
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Wild. I get nervous thinking about cash sitting around idle, and have more than once considered investing for the long term on margin.
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Aaaand now I'm reading about the Kelly Criterion. Twitter is a plague.
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