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The aggregated of demand, ability to move funds effectively turn the underlying accounts into commodities that can compete based on that one feature (yield). T
by onshm 7y ago
The aggregated of demand, ability to move funds effectively turn the underlying accounts into commodities that can compete based on that one feature (yield).
The other difference is that this money is fluid unlike a CD. With enough data the app should be able to predict how much of the aggregate funds would remain static in the account over what periods of time though. So banks could offer rates based on that aggregate guidance.
- perl4ever 7y agoIf you can't get a higher rate with say a billion dollars belonging to one decision maker, how would people with much less improve their returns by coordinating? What you call the money being "fluid" would tend to make it less valuable than CD deposits.