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It does make sense to me. How much do they make on small transactions and how much does human intervention cost? These firms have tons of internal overhead to
by mathattack 15y ago
It does make sense to me. How much do they make on small transactions and how much does human intervention cost? These firms have tons of internal overhead too.
A customer with 100mm is possibly only 10x as hard to serve as one with 100k.
I suspect the endgame is 100 pct automated services for most of the market. This won't be provided by the big firms who struggle to get my credit card and checking account on the same screen.
- ahi 15y agoI can video chat with someone on the other side of the globe, but it takes Megabank a couple days to "wire" (what the fuck does that even mean?) my money to Hugebank a couple blocks away. I am sure we all have plenty examples of our banks' inefficiency. With fees and free money from the Fed, banks haven't felt any pressure to improve their business processes. With congress kicking fees away from them, they might have to learn how to not suck at their jobs.
- JumpCrisscross 15y agoThere is also a huge regulatory burden. There is still a lot of federal infrastructure that requires "hard copies" or T+3, i.e. 3 days to settle transactions. Innovation in commercial banking is very slow.
- mathattack 15y agoOn many cases they are top cumbersome to change. Classic Innovators Dilemna. It has to be someone new without top of the market profits to protect. That entrant will serve you and me.