Dave, excellent post. Funny how our writing themes are aligning in 2023. My key points of difference: 1) banking used to be a community activity, now requires scale to manage the compliance and regulatory hurdles.. with bank margin driven by breadth of business and data economies of scale 2) Big banks work for most people.. they are adequate 70-80% of cases. 3) retail banking is a very low margin business with banks incurring a net loss on the bottom 30-40% of consumers (in US). 4) Agree on integration of banking into platforms that consumers use. V/MA are becomming the enablers here as they provide economics and agreements for QOS. 5) Other opportunities abound in specialist segments with unique needs (ex Gig workers).
I think it's interesting Tom. My views come more from the technology perspective, yours come more from the business perspective, the fact that they cross-reference leads me to believe that we are on the right tracks.
I think the future is a mix--what the Monetary Authority of Singapore is doing with PayNow; most of what Brazil is doing with PIX, and even some of India's UPI lessons--all enabling financial inclusion, with a minimum of fraud (so at least incipient identity security), and high degrees of interconnectivit!y
Dave, excellent post. Funny how our writing themes are aligning in 2023. My key points of difference: 1) banking used to be a community activity, now requires scale to manage the compliance and regulatory hurdles.. with bank margin driven by breadth of business and data economies of scale 2) Big banks work for most people.. they are adequate 70-80% of cases. 3) retail banking is a very low margin business with banks incurring a net loss on the bottom 30-40% of consumers (in US). 4) Agree on integration of banking into platforms that consumers use. V/MA are becomming the enablers here as they provide economics and agreements for QOS. 5) Other opportunities abound in specialist segments with unique needs (ex Gig workers).
I think it's interesting Tom. My views come more from the technology perspective, yours come more from the business perspective, the fact that they cross-reference leads me to believe that we are on the right tracks.
I think the future is a mix--what the Monetary Authority of Singapore is doing with PayNow; most of what Brazil is doing with PIX, and even some of India's UPI lessons--all enabling financial inclusion, with a minimum of fraud (so at least incipient identity security), and high degrees of interconnectivit!y