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It supposedly costs $1000+ to acquire a bank customer. When I worked at a Neobank, our valuations were based on that number multiplied by the number of custome
by adrr 2y ago
It supposedly costs $1000+ to acquire a bank customer. When I worked at a Neobank, our valuations were based on that number multiplied by the number of customers we had and people believed our valuations. Never had problems raising money.
- mcny 2y agoI will never forget the situation of a friend whose father committed check fraud in her name when she was still a child meaning she was never able to have a bank account in her name her whole life (without sending her father back to jail). I suspect the high valuation is because there are a lot of people like my friend or her dad who can't be on that list of possible banking customers because they can't have a bank account at all. I really like the idea of everyone having a permanent, fee-free bank account with the federal reserve. It can be zero interest as far as I'm concerned but it should be accessible to everyone regardless of criminal history.
- DeathArrow 2y ago>I really like the idea of everyone having a permanent, fee-free bank account with the federal reserve. It can be zero interest as far as I'm concerned but it should be accessible to everyone regardless of criminal history. This might be a great business ideas, starting a bank that caters to criminals. Of course, the fees should be pretty high to offset the risks.
- HenryBemis 2y ago> zero interest this mean that you are losing anything between 1% and 10% of your money per year (aka inflation). I am not advocating for big banks (which had put food on my table for most of my life) but you only need a (zero-interest) checking account with a debit card for your spending money. Everything else (imho) is most beneficial if you keep them spread out/hidden away, and serving your other purposes (a balance of growth x availability x speed_of_withdrawing). I remember watching this vid (https://www.youtube.com/watch?v=auzLhKvsxnQ https://www.youtube.com/watch?v=auzLhKvsxnQ) many years (it feels like it was way before the 6y YT says its age is). I do a combination of this video and the Dave Ramsey 'envelope system' (but with different banks and with different accounts). Now, she speaks about the "US way of life" but I like the principle/discipline of this.
- ty6853 2y agoThe federal reserve doesn't want zero risk banking where end customer is effectively 100% on their books, and will deny accounts to any bank that functions the way your service would would work ( see the denial of account to The Narrow Bank ). It's against their monetary policies as it destroys the mechanism by which credit expansion happens. > “pose undue risk to the stability of the U.S. financial system and would adversely affect the Federal Reserve’s ability to implement monetary policy" https://www.chicagobooth.edu/review/safest-bank-fed-wont-sanction https://www.chicagobooth.edu/review/safest-bank-fed-wont-san...
- markstock 2y agoThe US Treasury has one, though. Not sure if that satisfies the above criteria.
- DeathArrow 2y ago>It supposedly costs $1000+ to acquire a bank customer. Those were app users, not bank customers. I think that is less valuable.
- trhway 2y agoThe social media and other app users have long crossed $100/user price, like a decade ago. So, their app isn't just an app, it is a financial app. Those users can be valued at several hundred each - thus 300 000 real user they had could really be valued at $100M+, no need to fake.
- adrr 2y agoMeta makes $200+ for each US/Canada active user per year.