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You'd need a huge bankroll to get started. Financial startups aren't as easy as a social media web 2.0 site. Look at prosper.com. Regulatory costs are astron
by pragmatic 18y ago
You'd need a huge bankroll to get started. Financial startups aren't as easy as a social media web 2.0 site.
Look at prosper.com. Regulatory costs are astronomical. Between state and federal auditors and Sarbanes-Oxley and CRA, etc, you'll have your hands full.
Also, why would investor capital flow to you? You'd make a lower return with no upside of lower defaults, etc.
But yes go ahead. Start a low rate credit card company. I might sign up for your card!
- helveticaman 18y agoMore importantly, you'd have to cover lobbying costs for 5 or 6 years just to break into the tight oligopoly.
- lnguyen 18y agoDiscover finally settled a suit with Visa and Mastercard over anti-competitve practices: http://www.reuters.com/article/bankingFinancial/idUSN2735065420081028 http://www.reuters.com/article/bankingFinancial/idUSN2735065... FYI, Discover's been around since 1985 (introduced during '86 Superbowl), suit was filed in 2004 (along with a similar one by AmEx) and finally settled in October for $2.75 billion.
- anamax 18y ago> Sarbanes-Oxley Only if you're public in the US. If you're not holding deposits/selling insurance, it's unclear why you'd have financial audits by govt organizations. You'd have to deal with the restrictions on offering credit though.