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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@Superhuman can charge $30/month for email, someone can figure out how to create a $30/month experience for checking... -
Chase Sapphire banking is ~$25 but I would bet they expect rather few people to pay it ($75k in assets across Chase + their investment arms => waiver). I would use the Superhuman of checking in a hot second though... tough to make a business out of it but not impossible?
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I think you’re underestimating the value of nearly-free, very sticky (in the aggregate) funding from retail deposits. There are a surprising number of people out there with $50k average balances over time that add up to real money.
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It’s kind of a truism that the value of most banks is in their deposits not their lending. Not so different from brokers, except that most banks have higher-yielding ways to lend their money than Schwab Bank’s securities portfolio.
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Wonder if interest rates as a knob, not sufficient, by which Banks can control this? E.g. -ve rates (amounting to charging people) & various levels of +ve rates in high interest rate (developing world) regimes.
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