7 ms·

Please name one “banking innovation” the banking industry has implemented in the last decade which has benefitted consumers.

morelisp 4y ago
VCs and founders must believe SVB offers at least one, or why not go with a normal bank?
- gesticulator 4y ago
  This has to do with a web of relationships and risk tolerance, not some product set…
  - morelisp 4y ago
    Whatever you mean by "relationships" is in fact an "innovation" in the banking sense.
- saurik 4y ago
  And how did that work out for them? Are many of the people who were using SVB yesterday happy about their decision today? If they could go back in time and give up whatever that innovation was, and not be praying that they still have their money next week, are you saying most of them would be happy where they are? The problem here is that the system just isn't transparent enough: you put your money in a bank and I guess you just have to assume that they are really really smart or you lose your money... people make fun of crypto here constantly, but at least there everything is an open book. At the end of the day, the situation with SVB is actually worse than some scary DeFi protocol.
  - nradov 4y ago
    The system is sufficient transparent. SVB was a publicly traded company. Customers who cared about risk could just read the reports. In the end any bank can fail. https://ir.svb.com/financials/sec-filings/default.aspx https://ir.svb.com/financials/sec-filings/default.aspx The depositors will get their money back, with perhaps a small delay. Which is more than you can say for scams like cryptocurrency.
    - monodeldiablo 4y ago
      Depositors will get their insured money back. Is there a commitment from the FDIC to make all depositors whole? If so, that's not typical.
      - morelisp 4y ago
        The FDIC insurance won’t make the rest whole, the bankruptcy process will. The assets are not fundamentally toxic and someone will buy them, with a haircut. Play stupid games, win 70 cents on your dollar.
- nradov 4y ago
  SVB was a normal bank. They specifically targeted tech industry startups through relationships with VCs and founders, but there was nothing special about the banking side.
- deleted 4y ago
  [deleted]
astrange 4y ago
Same-day ACH, aka why you now get paid two days earlier than you used to. Check deposits by smartphone camera. Most of the stuff on https://www.bitsaboutmoney.com https://www.bitsaboutmoney.com.
- talideon 4y ago
  OK, how about mentioning something that isn't typical in the EU while still adhering to Basel III. Plenty of time here... Meanwhile, how close is the US to making Chip-and-PIN a thing? And who still uses cheques these days?!
  - astrange 4y ago
    We have chip-and-nothing, or contactless, which is better than Chip-and-PIN. (Note Apple Pay and similar are basically chip-and-PIN because it's authenticated by the phone passcode.) > And who still uses cheques these days?! US uses them for business-to-customer payments, especially unsolicited ones, because we don't want to give random businesses we don't know our bank account numbers.
    - orwin 4y ago
      You can't get your refund directly on your credit card? It's standard for at least clothes and tools/furniture in my country.
      - astrange 4y ago
        We can, but sometimes you get payments in the mail from businesses you only have an occasional relationship with. You can pay people instantly by refunding their debit cards - that's how Uber drivers can get paid - but it's not free, which is why most transfers don't go that way.
    - monodeldiablo 4y ago
      Those numbers at the bottom of a cheque? Yeah, they include your account number. There's no inherent information risk to giving out an account number that justifies an outdated paper-based system. Especially when one considers the accompanying fraud risk thereof. The instant I moved to Europe, I realized just how far behind consumer banking is in the US. It's pitiful.

morelisp 4y ago

VCs and founders must believe SVB offers at least one, or why not go with a normal bank?

gesticulator 4y ago
This has to do with a web of relationships and risk tolerance, not some product set…
- morelisp 4y ago
  Whatever you mean by "relationships" is in fact an "innovation" in the banking sense.
saurik 4y ago
And how did that work out for them? Are many of the people who were using SVB yesterday happy about their decision today? If they could go back in time and give up whatever that innovation was, and not be praying that they still have their money next week, are you saying most of them would be happy where they are? The problem here is that the system just isn't transparent enough: you put your money in a bank and I guess you just have to assume that they are really really smart or you lose your money... people make fun of crypto here constantly, but at least there everything is an open book. At the end of the day, the situation with SVB is actually worse than some scary DeFi protocol.
- nradov 4y ago
  The system is sufficient transparent. SVB was a publicly traded company. Customers who cared about risk could just read the reports. In the end any bank can fail. https://ir.svb.com/financials/sec-filings/default.aspx https://ir.svb.com/financials/sec-filings/default.aspx The depositors will get their money back, with perhaps a small delay. Which is more than you can say for scams like cryptocurrency.
  - monodeldiablo 4y ago
    Depositors will get their insured money back. Is there a commitment from the FDIC to make all depositors whole? If so, that's not typical.
    - morelisp 4y ago
      The FDIC insurance won’t make the rest whole, the bankruptcy process will. The assets are not fundamentally toxic and someone will buy them, with a haircut. Play stupid games, win 70 cents on your dollar.
nradov 4y ago
SVB was a normal bank. They specifically targeted tech industry startups through relationships with VCs and founders, but there was nothing special about the banking side.
deleted 4y ago
[deleted]

astrange 4y ago

Same-day ACH, aka why you now get paid two days earlier than you used to. Check deposits by smartphone camera. Most of the stuff on https://www.bitsaboutmoney.com https://www.bitsaboutmoney.com.

talideon 4y ago
OK, how about mentioning something that isn't typical in the EU while still adhering to Basel III. Plenty of time here... Meanwhile, how close is the US to making Chip-and-PIN a thing? And who still uses cheques these days?!
- astrange 4y ago
  We have chip-and-nothing, or contactless, which is better than Chip-and-PIN. (Note Apple Pay and similar are basically chip-and-PIN because it's authenticated by the phone passcode.) > And who still uses cheques these days?! US uses them for business-to-customer payments, especially unsolicited ones, because we don't want to give random businesses we don't know our bank account numbers.
  - orwin 4y ago
    You can't get your refund directly on your credit card? It's standard for at least clothes and tools/furniture in my country.
    - astrange 4y ago
      We can, but sometimes you get payments in the mail from businesses you only have an occasional relationship with. You can pay people instantly by refunding their debit cards - that's how Uber drivers can get paid - but it's not free, which is why most transfers don't go that way.
  - monodeldiablo 4y ago
    Those numbers at the bottom of a cheque? Yeah, they include your account number. There's no inherent information risk to giving out an account number that justifies an outdated paper-based system. Especially when one considers the accompanying fraud risk thereof. The instant I moved to Europe, I realized just how far behind consumer banking is in the US. It's pitiful.