Banks of Tomorrow: Think Google and Facebook

CommanderFrank

CommanderFrank

Cat Can't Scratch It
Joined
May 9, 2000
Messages
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Chances are good that in the very near future most of the corner bank buildings you see today will be occupied by tenants other than branch managers and tellers. If technology hold true to form, sooner or later the banking industry is destined to go the way of dial-up, floppy drives or phone book Yellow Pages.

Google, Facebook, or Apple will eventually offer online banking services as Moven and Simple have done, and these services are sure to be much easier to use — and more powerful — than what an old school bank could give us.
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Always funny to see examples of something new be tied concurrently to something they're supposedly replacing. Both examples (Moven and Simple) are products of standard, brick and mortar commercial banks.
 
I'm sorry. The really big banks make companies like Google and Facebook look like flies on shit.
 
Pretty slick. Start collecting deposits and then be declared Too Big to Fail. You'll be on the taxpayer tit forever.

Surprised Amazon hasn't tried this yet. They can lose money indefinitely.
 
Yes, because I want two companies that make their money by data mining to have direct access to my financial records. I can't see any problems with that....
 
griffinhart said:
Yes, because I want two companies that make their money by data mining to have direct access to my financial records. I can't see any problems with that....
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You would be very surprised by what's in your file at your bank, then.
 
As much as I would love for the big banks to take a long walk off of a short pier, Google and Facebook are not going to be the ones to make them do it.
 
‘There’s some demographics where they’ll always want to go to the branch. But that’s becoming less and less relevant’— Josh Reich

True to some extent. I got my first mortgage loan without setting foot in the branch office once. The loan officer showed up to the title company on closing day, and that was my only *real* contact with the bank until they started sending statements.

But I was in Retail Banking for eight years. They call it "retail" for a reason. A bank depends on *selling* other products besides mortgage loans & check/saving accounts. (alternative investments, long term CDs, small business loans, etc.) I don't see that ever moving online.
 
LeninGHOLA said:
You would be very surprised by what's in your file at your bank, then.
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That is why there are very strict federal privacy guidelines that all banks follow in their own form. Most reputable banks like Wells Fargo use your information internally and do not sell any data bits to other companies.
 
LeninGHOLA said:
I'm sorry. The really big banks make companies like Google and Facebook look like flies on shit.
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https://www.google.com/finance?q=NYSE:WFC
https://www.google.com/finance?q=NASDAQ:GOOG

Surface: Google is worth more than Wells Fargo, the highest valued bank in the United States.

Deeper: Wells Fargo has $1.44Trillion in assets. However, this only translates to $160B in equity. Google has merely $79B in equity.

The leverage of $1.44T is quite powerful, but they have quite a lot of liability as well, specifically $1.28T.

At this point, Google's financial position is more secure, and this is represented by their market valuations. Simply put: it would take more to dethrone Google and lose its equity and growth than it would for Wells Fargo to over-leverage itself and collapse.

I think the more correct phrasing would be:

"The really big banks think companies like Google and Facebook are flies on shit."

This is what entrepreneurs call a disruptable position.
 
I can't wait for Facebook to say they know you're an evil smoker because of the pics on your wall and that you obviously have extra income to make your car payment when you try to tell them you have no money.
 
I prefer to do business with small local banks. It to bad laws these days designed to supposedly fix big banks just screw smaller better run banks. I suppose sooner or later Google or Facebook will be just like Paypal, with till of the good and all of the bad of a big bank.
 
At this point, Google's financial position is more secure, and this is represented by their market valuations. Simply put: it would take more to dethrone Google and lose its equity and growth than it would for Wells Fargo to over-leverage itself and collapse.

"The really big banks think companies like Google and Facebook are flies on shit."

This is what entrepreneurs call a disruptable position.
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I think the correct statement would be "The really big banks think companies like Google and Facebook are flies on shit when it comes to International Commercial Banking", which is where big banks make their money. Small Banks and Co-Ops, Credit Unions, make their money loaning it to Small Businesses.

Consumer banking is about selling products and services, and big companies like Google and "popular for the moment" companies like Facebook bring none of the security that small co-ops and community banks offer (like your money is safe and also helping out your local community, old school banking lets call it)..or really even big-banks.......but all the problems that do come with huge companies. Banking is more about trusting someone else to gamble with your money, I feel Google is the type of company that would simply become just-another-big-bank, and it would be a cold day in hell I trusted Zuckerberg's neck-beards with anything involving my financial future.
 
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