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Yeah its happening because fintechs are getting around the rules that were introduced on the traditional banking system. Anti money laundering, KYC, loan regula
by zz865 5y ago
Yeah its happening because fintechs are getting around the rules that were introduced on the traditional banking system. Anti money laundering, KYC, loan regulations, rules to open branches in certain demographics, dodd-frank etc - all this stuff isn't free, the traditional banks are drowning in rules and regulations. I know I used to work there.
Of course you can create a simple service that ignores all those rules and it'll be cheaper.
- sarora27 5y agoI currently work for a fintech and i can argue we're not getting around the rules, we're just able to move faster on it. We have invested a ton of resources into things like AML, KYC, and ensuring compliance. The only difference between us and a bank going through this is that we get to generally work w/ newish systems and minimal bureaucracy. Meanwhile banks have to work w/ much more antiquated systems and bureaucracy that makes it harder for them to move at all.
- wiseowise 5y agoI worked for both, you're wrong. The difference between fintech and traditional banks is that former treats tech as revenue driver and latter as cost center and it feels in literally every step.
- deeg 5y agoDon't forget the massive bureaucracy at traditional banks. I worked at a small company that was building a payments platform for a large US bank. The amount of turf-protecting between the different payment types within the bank was mind-boggling. Everything was highly compartmentalized and it could take weeks to get a config setting changed on a test server. It was an interesting experience for me watching from the outside.