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It’s a banking industry problem. The government shouldn’t have to step in: the "free market" should be able to innovate, just like DeFi is doing now out of nece

It’s a banking industry problem. The government shouldn’t have to step in: the "free market" should be able to innovate, just like DeFi is doing now out of necessity.

djbusby 5y ago
Innovation without revenue streams don't get funded by profit seeking organizations. EU didn't innovate their way, it was regulated into place.
- ISL 5y ago
  From an ISP of the early 2000s, free top-quality email hosting didn't have an obvious revenue stream, yet Gmail noted that it was possible and, later, almost certainly found a way to make it profitable. The trick with an unsexy thing like low-cost bank transfers is finding a way to make it attractive to consumers at the time they select a bank.
  - rootusrootus 5y ago
    In today's world I think people might be more sensitive about their banking data being collected and sold or used for advertising. Most people still don't seem to give e-mail that kind of consideration, but banking is on a different level.
  - lostcolony 5y ago
    Nobody picks a checking account based on how efficient bank transfers are. It's not that people don't care; of course they do. It's just not something that is advertised, or relevant to you until you run into it, and so is completely overshadowed by what IS advertised, and will affect you immediately (cost of the account, availability of funds once deposited, easy of deposit, etc).
    - JumpCrisscross 5y ago
      > Nobody picks a checking account based on how efficient bank transfers are Few people, not nobody. I picked my bank because they don't charge for incoming and outgoing wires. (Downside: no Zelle.)
manuelabeledo 5y ago
Banks are already free to innovate. There are just no incentives for them to do so, especially if it supports small retail customers. This very same symptom can be seen in US and Canadian ISPs: there is just not enough money in certain markets for them to compete against each other, and they don't, so the government should definitely step in.
- sergiomattei 5y ago
  Yeah, it’s a market problem. We disagree on the solution but agree with the problem: there is no incentive to innovate. Perhaps the government stepping in is better for the societal “greater good”, I’ll have to think about this and come to a personal conclusion.

It’s a banking industry problem. The government shouldn’t have to step in: the "free market" should be able to innovate, just like DeFi is doing now out of necessity.

djbusby 5y ago

Innovation without revenue streams don't get funded by profit seeking organizations. EU didn't innovate their way, it was regulated into place.

ISL 5y ago
From an ISP of the early 2000s, free top-quality email hosting didn't have an obvious revenue stream, yet Gmail noted that it was possible and, later, almost certainly found a way to make it profitable. The trick with an unsexy thing like low-cost bank transfers is finding a way to make it attractive to consumers at the time they select a bank.
- rootusrootus 5y ago
  In today's world I think people might be more sensitive about their banking data being collected and sold or used for advertising. Most people still don't seem to give e-mail that kind of consideration, but banking is on a different level.
- lostcolony 5y ago
  Nobody picks a checking account based on how efficient bank transfers are. It's not that people don't care; of course they do. It's just not something that is advertised, or relevant to you until you run into it, and so is completely overshadowed by what IS advertised, and will affect you immediately (cost of the account, availability of funds once deposited, easy of deposit, etc).
  - JumpCrisscross 5y ago
    > Nobody picks a checking account based on how efficient bank transfers are Few people, not nobody. I picked my bank because they don't charge for incoming and outgoing wires. (Downside: no Zelle.)

manuelabeledo 5y ago

Banks are already free to innovate. There are just no incentives for them to do so, especially if it supports small retail customers. This very same symptom can be seen in US and Canadian ISPs: there is just not enough money in certain markets for them to compete against each other, and they don't, so the government should definitely step in.

sergiomattei 5y ago
Yeah, it’s a market problem. We disagree on the solution but agree with the problem: there is no incentive to innovate. Perhaps the government stepping in is better for the societal “greater good”, I’ll have to think about this and come to a personal conclusion.