4 ms·
I disagree that the institution becomes the enemy: what is really happening is that a portion of the fee Mint earns from a referral is being given the consumer,
by mediaman 17y ago
I disagree that the institution becomes the enemy: what is really happening is that a portion of the fee Mint earns from a referral is being given the consumer, in the form of higher interest or some other perk.
By grouping multiple customers together, Mint is further reducing transaction costs for the bank, so that it may become economic for Mint to give some of the rewards to the consumers, in the form of higher interest (Mint earns less because the bank will have to pay Mint less to make up for the better deal to the consumers).
If this allows Mint to generate enough leads, the smaller fee may be made up by an increase in volume.
- arfrank 17y agoI agree with you that the institution does not become the enemy. I had always envisioned in my head as by bringing in customers to a bank that bank gains leverage too. So say you bring an extra 1 mil in savings accounts to a small bank, that bank now has X times as much to lend out as credit/leverage. Same goes for mortgages.
- joez 17y agoOkay, I can see if from this perspective. The way I originally understood it was more from an aggregation of power into the hands of the consumer. By banding together they would be able to leverage a better rate. In that sense I would see the bank as becoming a common enemy (probably a poor choice of wording too). This is an interesting model in that Mint becomes the preferred provider or discount broker or something along those lines.