> Not sure it makes sense, can they really compete against a "narrow banking" style bank? Sure they can. They should be able to offer a better interest rate on

> Not sure it makes sense, can they really compete against a "narrow banking" style bank? Sure they can. They should be able to offer a better interest rate on their deposits. "... new customers is one way, if not the cheapest way, to secure those reserves. Indeed, the current targeted fed funds rate—the rate at which banks borrow from each other—is between 0.25% and 0.75%, well above the 0.01% to 0.02% interest rate the Bank of America pays on a standard checking deposit.5 6 The banks don’t need your money; it’s just cheaper for them to borrow from you than it is to borrow from other banks." [0] Why is that? why is it cheaper for banks to borrow from me than from other banks? I say it's due to the lack of competition. [0]https://www.investopedia.com/articles/investing/022416/why-banks-dont-need-your-money-make-loans.asp https://www.investopedia.com/articles/investing/022416/why-b...