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Ehh, I heard that song before and arguably there is a threat posed to banks' market power and influence from current breed of fintech and new entrants, but the

Ehh, I heard that song before and arguably there is a threat posed to banks' market power and influence from current breed of fintech and new entrants, but the more time I spend in banking, the less chance I see for a serious disruption. I was initially going to cite an interview I did with a high level executive of a regional bank, whose entire view on the matter could be paraphrased as 'apps may be cool for kids, but when you want a full service, you want a bank'. I personally felt it was a little.. arrogant, but I understand where he was coming from. The compliance burden alone itself can be painful for new players. Then again, Amazon already has experience and they are clearly doing relatively well ( their OFAC settlement was minimal - https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20200708 https://home.treasury.gov/policy-issues/financial-sanctions/... ). The executives should take note. edit: added 'alone' the burden sentence.

BenoitEssiambre 5y ago
While it's true that compliance, know your customer, anti- money laundering laws are the crux of this, who knows more about their customers than big tech companies? This is an area where big tech actually has a built-in advantage.
- secondaryacct 5y ago
  Probably but on my side of banking our main attraction is capital concentration. If nothing else, being enormous and focused entirely on getting more in to redirect to productive investments is the main "secret" to crack. All fintech companies miss this point: they can get sexy, get a bit of retail, but when you want to buy a supermarket or expand a business you already have, you dont need software. You need capital. AWS and Walmart may have some, and could convince clients to switch to them, but they re not going to be anything else than one more big pool of money to lend and collect.
  - BenoitEssiambre 5y ago
    I think Stripe now does lending to customers that need capital to grow so they are slowly getting into that type of thing.
- twic 5y ago
  Who does worse at customer service than big tech companies?

BenoitEssiambre 5y ago

While it's true that compliance, know your customer, anti- money laundering laws are the crux of this, who knows more about their customers than big tech companies? This is an area where big tech actually has a built-in advantage.

secondaryacct 5y ago
Probably but on my side of banking our main attraction is capital concentration. If nothing else, being enormous and focused entirely on getting more in to redirect to productive investments is the main "secret" to crack. All fintech companies miss this point: they can get sexy, get a bit of retail, but when you want to buy a supermarket or expand a business you already have, you dont need software. You need capital. AWS and Walmart may have some, and could convince clients to switch to them, but they re not going to be anything else than one more big pool of money to lend and collect.
- BenoitEssiambre 5y ago
  I think Stripe now does lending to customers that need capital to grow so they are slowly getting into that type of thing.
twic 5y ago
Who does worse at customer service than big tech companies?