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These sound like direct banks. In Germany, there are a few of those, ING being the largest, and represent about 50% of the private market. Pretty viable therefo
by V__ 4y ago
These sound like direct banks. In Germany, there are a few of those, ING being the largest, and represent about 50% of the private market. Pretty viable therefore.
- abdullahkhalids 4y agoING [1] is offering a variety of financial services, including financing and savings accounts. Such banks necessarily have to operate at scale, in order to offset fraud/investment loss. I am specifically asking for the viability of a small "dumb" bank, which engages in only the lowest risk activity. Surely, technology has reached the point where a small team can create a bank of the sort I am suggesting. But do financial regulations and economic realities allow for it? [1] https://www-ing-de.translate.goog/?_x_tr_sl=en&_x_tr_tl=ur&_x_tr_hl=en-US&_x_tr_pto=wapp https://www-ing-de.translate.goog/?_x_tr_sl=en&_x_tr_tl=ur&_...
- V__ 4y agoI don't think the economies allow for it. The German Sparkasse started as a savings bank and at its core was/is a 'dumb bank' in your words. But at some point customers demand financing etc. and would like to get all their basic needs from one bank instead of having multiple. So these banks adapted.
- inferiorhuman 4y agoING, when they had US retail banking operations, wasn't huge but they also did things differently. For instance they did not offer fixed rate mortgages – it's a lot easier to keep an adjustable loan on the books. They also did tech better than most banks (until the dumpster fire that is Capital One bought them out).