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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The microeconomics of e.g. a checking account are *brutal.* It’s like selling $12 a month SaaS with a yearly OpEx of about $120 per account. That math should be terrifying.
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Replying to @patio11
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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Replying to @Renevith
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.
10:14 PM - 31 Oct 2019
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