Register and share your invite link to earn from video plays and referrals.

PaperImperium
@ImperiumPaper
Joined July 2021
769 Following    10.6K Followers
> Banks are winning balances on convenience, reliability, and fees. Until there’s competition along these axes, I think neobanks and fintechs will be disappointed by minimal balance migration ⬆️ This is the part that Crypto Twitter glosses over. Yield on balance is not necessarily what people are optimizing for. If they are, they’re probably not sitting in a regular bank account, but in a HYSA or even a brokerage account.
Show more
So I just pulled the 2022 Consumer Survey (most recent year) from the Fed. People are mostly keeping cash in checking for transactions, and about a quarter of it in savings. The complementary services being consumed by these users are (in order of importance): Have an ATM or debit card Receive direct deposits Have mobile banking Make automatic or recurring payments Write paper checks Banks are winning balances on convenience, reliability, and fees. Until there’s competition along these axes, I think neobanks and fintechs will be disappointed by minimal balance migration I’m of course not a banker, so would be curious to hear if bankers themselves view their advantage as bundles transaction services rather than yield based.
Show more