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Not even close. The banking startups are collecting account holder information so they can turn around and upsell you on credit cards and other products. But
by redis_mlc 7y ago
Not even close.
The banking startups are collecting account holder information so they can turn around and upsell you on credit cards and other products.
But it gets better ...
There is no such thing as a startup bank in the US because the government doesn't grant bank charters anymore. All those new companies aren't banks at all. They piggyback on top of an existing bank or the ACH network.
That's why none of them say FDIC-approved, since they can't be part of FDIC.
- Nition 7y agoSure, but you need a reason for people to sign up in the first place, right? And if their current bank is already great they'd be less likely.
- smnrchrds 7y ago> government doesn't grant bank charters anymore Is this true? Why is this the case? How long has it been like this?
- steventhedev 7y agoNew banks are getting FDIC approval[0]. Latest one was approved last Friday. Perhaps you meant something else? [0]: https://www.fdic.gov/regulations/laws/bankdecisions/depins/index.html https://www.fdic.gov/regulations/laws/bankdecisions/depins/i...