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Credit isn’t really what makes a bank. In fact many non banks provide credit (amex isn’t a bank I think). Taking deposits is the key thing. And I understand mos
by cm2187 7y ago
Credit isn’t really what makes a bank. In fact many non banks provide credit (amex isn’t a bank I think). Taking deposits is the key thing. And I understand most fintech use an actual 3rd part bank if they take deposits. And without taking deposits, it is hard to provide cheap long term credit.
- rietta 7y agoBut they are! They even have high interest savings account that are FDIC insured. See https://www.americanexpress.com/personalsavings/home.html https://www.americanexpress.com/personalsavings/home.html
- cm2187 7y agoGranted, bad example. But my point is that you don't need a banking license to make a loan, except in certain jurisdictions for certain loans (mortgages).