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I don’t understand what the fintech is adding to the equation. Brokered CDs have been a thing forever. If you’re holding millions in cash shouldn’t you be usin
by Spooky23 4y ago
I don’t understand what the fintech is adding to the equation. Brokered CDs have been a thing forever.
If you’re holding millions in cash shouldn’t you be using T-Bills and lines of credit for treasury management? DIY finance at scale is dumb.
- JumpCrisscross 4y ago> DIY finance at scale is dumb It's also not a core competency a start-up should have to focus on. For all their talk of adding value, outsourced treasury management would have been a valid one.
- patio11 4y agoI don’t understand what the fintech is adding to the equation. The goal of these products is that, to you the user, it feels like "money in your account." You don't need to think of the mechanics of brokered CDs if you e.g. want to keep $750k on deposit at Schwab. You just... keep $750k on deposit at Schwab, and Schwab does some magic you don't care about, and you're insured. Scale up the numbers a bit and sell it to companies, and that is the fintech pitch.
- hnaccount_rng 4y agoWhat happens if you use multiple sweep products? In your example the one from Schwab for 750k$ and the other one for (don’t quite remember) 5m$? Who checks that those two didn’t use overlapping banks?