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Why is the US banking system so far behind?
- Broken_Hippo 12y agoI agree with the article - the reason the US banks are behind is because the banks haven't been required to do proper upgrades. Consumers rarely have the power to change things in this situation: The pressure would either need to come from the government or it would have to come from a partner company - something along the lines of Visa or paypal or the like. I will say that the system in Europe seems much more secure: additionally at least here in Norway people do give out their bank account number to others - which was shocking to me as an american at first, but truly is simply more telling about the low risk level in doing so. The other person wouldn't be able to do anything but deposit money with the bank account number, rendering transactions safer.
- pzxc 12y agoI disagree completely - the reason the US banks are behind is because the heavily-regulated environment they operate in means they are not subject to free market competition, and they have no incentive to capitalize (pay for) proper upgrades when they don't have any competition that will take away their market share if they don't. It's the same reason our internet speeds are subpar compared to the rest of the world -- when you have government-enforced monopoly status, you are going to lag behind the free market. Make it easier for new ISPs to enter the market, and you will see AT&T and Comcast all of a sudden deciding it's worth it to offer a better product. Make it easier for new banks to enter the market, and you will see Bank of America etc all of a sudden deciding it's worth it to offer a better product. When people see a market that isn't operating efficiently, and then proclaim "Well the reason this inefficiency exists is because the government hasn't forced them to be efficient!", that is personally very frustrating to me.
- sharemywin 12y agoSo Sweden is free market leader in banking?