Broadly agree with this. Retail banking is a subsidy the public and regulators demand from banks in return for the host of privileges regulated financial institutions have which are necessary to run the banking businesses which actually make money.https://twitter.com/JorgeO/status/1189761310331826176 …
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Plausibly someone wins here! But they probably win by accepting the same trade off as legacy financial institutions: “People are unwilling to pay for our best services so either we figure out how to charge someone other than the customer for them or we use them as lead gen.”
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What's the majority of that OpEx? Physical branches + staff? Surely running an online-only checking account isn't that costly?
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Many technologists would benefit from reading more annual reports on that sort of subject. Spoiler from e.g. Ally Bank: OpEx of $189 per retail deposit customer (~$100 per acct). Ally has 0 branches. Compliance departments, software teams, etc are not free.
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Are you looking at branch banking, or online only? I’d agree with branch banking due to the high costs of real estate and in-person staff at the branch. But online only seems like it’s built for scaling and also cloud (if built fresh, versus being on legacy bank tech stacks).
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