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Hopefully the author here is right in that the SEC will continue to step in and say "No, you can't just call it something else. What you're providing is a bank
by Derek_MK 8y ago
Hopefully the author here is right in that the SEC will continue to step in and say "No, you can't just call it something else. What you're providing is a bank account."
If Robinhood manages to get away with saying "It's not a bank account; it just does everything a bank account does", and therefore that it doesn't require the same level of regulation, then that's going to be a HUGE problem.
- the_clarence 8y agoMy guess is that it is really hard to become a bank in the US and this has slowed down innovation. Look at The UK and what they did with openbanking. You now have new banks like Monzo and Revolut which are completely disrupting the industry. I’d advise anyone to get a Revolut card, Monzo is unfortunatey UK-only, to see what it means to have a bank 2.0
- Derek_MK 8y agoThe reason why it's hard to become a bank in the US is because there are regulations in place to keep companies from screwing over customers for their own gain or in their own stupidity. In this case, Robinhood didn't look into what they needed to do to follow those regulations. If they DID follow the regulations, then they could provide their banking service.
- vikingcaffiene 8y ago> slowed down innovation When it comes to money and ensuring people manage mine correctly and honestly, I’ll take safety over innovation thank you very much. Feel free to continue “disrupting” low stakes stuff like juicers and scooters. Call me old fashioned.
- the_clarence 8y agoAgain. You should probably get a revolut card. You’ll save way more money this way believe me. It is disrupting shitty banking.
- mprev 8y agoIt is difficult to get a backing licence in the UK, though. OpenBanking is tangential to this and you still need regulatory approval (min £50k and several months of paperwork). Monzo spent a long time as a card provider only, while working to obtain their licence. Revolut has been operating for years and only just got their European banking licence four days ago. Other UK bank newcomers have bought smaller, established banks just for the licence; Aldermore bought Ruffler Bank mostly for its licence.
- the_clarence 8y agoRight. Can you do this is in the US?