There is an old saying about trying to be everything to everyone. I think it applies here.
To Google and Apple and especially Goldman- stop. Just stop.
I am getting fine service from USAA and they do not charge me a fee. Further, they refund ATM fees. Best of all, in the Financial Crisis, they did not take a penny in TARP money.
https://www.theatlantic.com/business/archive/2012/01/in-the-era-of-greed-meet-americas-good-bank-usaa/252161/
They also have a sterling reputation for customer service.
@David Gregory Taking a penny in TARP money. The problem was that in 2008, every major bank had to take TARP money even if they didn't need it. Otherwise, the effort wouldn't have worked.
If a solvent bank, such as JPM, refused to take TARP money - it would be a immediate signal that they were solvent and anyone who did take TARP money wasn't. The next step would be a run on banks who accepted TARP money.
It is a signalling issue. If a bank or credit union was too small to matter on the national stage, then it doesn't really mean that they were more financially viable than JPM.
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I’ve got it! They offer customers a spending tracking service attached to a personal budgeting app. The name? Froogle. For the win.
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Google is never shy about starting new ventures, but what in the world do Citi and SFCU have to offer?
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Lol. What bozos. Citigroup and Stanford Federal Credit Union?Oh, my. SFCU has $2bn in assets and 65,000 members. What a perfect partner. And what will the Google checking account feature? "Those are some of the details that will be determined closer to launch,” said Joan Opp, the chief executive of the Stanford Federal Credit Union." That means...Ms. Opp has no clue. Which is what most consumers want their bankers to be, right? Clueless?
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I can’t put a fine point on exactly why, but I feel a sense of dread welling up in me. I see many companies (and their CEOs), who have presently and historically shown a total lack of moral courage in being honest and responsible about the consequences of the products they’ve offered to the public, have a sincere and sustained interest in making inroads into global finance. Jack Dorsey of Twitter also runs Square and talks a big game about digital currency, Zuckerberg wants to create a digital currency, Google wants to do this (from the article)... with all of their records regarding social media (Twitter, Facebook, YouTube and Google search algorithms) and the “unforeseen” consequences of those products, it feels like we are imperiled as a planet if these people get ahold of global finance, as well. The current banks are already bad enough.
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The simple fact that FaceBook and Google think moving into digital currencies and banking
IS PROOF ENOUGH that it is a bad idea and needs to be blocked immediately by the federal government.
Fellow readers.. these companies know the internet is changing on them.. and they are desperately seeking new channels for revenue to keep them growing and thriving in a saturated internet.
Banks may not have the best reputation with customers overall, but at least they are good at what they do.. provide banking services to everyday people. They also are among the top of the food chain with regard to protecting customer data, customer money, and providing customers 7/24 banking that is convenient, reliable, and safe. And they exist in one of the most regulated and watched service industries.. and with good reason... peoples wealth and existence are in their hands, not just their social media bent.
FaceBook and Google on the other hand.... they don't want to be regulated by anyone, for anything. They promise to be responsible corporate citizens, yet they are at the center of scandal after scandal, and nearly perpetual investigation for not being responsible corporate citizens.
Apple has the right approach. They don't do banking, but they do make banking and finance in the digital realm safe and convenient.
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@Chuck Apple? The right approach? Discriminating against women in their joint venture with Goldman?
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This is an incredibly bad idea. We can only hope that it gets no traction.
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If Google focuses their attention on helping people monitor spending and use that information to chart their retirement withdrawal glide path, they would get my attention. Imagine putting Google’s intellectual horsepower behind figuring out the complexities involved with doing that! It’d be a home run.
@tom
Google will not do this though.
Why?
There is no revenue it it for them. The people most in need of such services... generally cannot afford to pay for said services, and Google is not going to do it for free.
I use a bank for almost nothing and expect it to keep it that way. My financial life is with investment firms like Schwab and affinity credit cards. My bank is for a simple things, such as paycheck deposit and automatic bill paying, and where I actually need physical presence: a safe deposit box and sufficient ATMs to get cash. Other than that, banks need to leave me alone. They have nothing else that I want, and I'm not sure what Google could do to change that.
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@Boomer
google just wants to tap into the financial transaction services business at the consumer level.. because that is where the revenue opportunity is... via fees and other transaction charges.. either to merchants, or consumers, or both.
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The author says that tech companies are not well positioned to solve typical customer concerns over high fees and paltry interest rates. I disagree. Tech companies could provide almost all the services of a traditional bank without the huge overhead of brick and mortar locations. This would allow them to reduce fees and improve interest rates.
So far, none of the tech alternatives to banks that I've seen have successfully done this, but that doesn't mean they won't. When they do, I think a lot of people like me will flock to them.
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@Harry McIntosh
Digtial banks already serve the digital banking only market.. and seem to do it fairly well.
Banks are a highly regulated service business. Google and Facebook would want the revenue from said service business, but would lobby and resist any attempt to actually regulate them. Which is why Google is trying to do this in a "shadow banking" manner.. using Citibank as a front.
I'm really surprised Google/Alphabet think this is a good time for a tech giant to jump into consumer banking.
I do my regular checking business with a local county credit union and I couldn't be happier. Fees are low, they have a mobile phone app, and they're involved in the local community throughout the year.
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Who isn't excited about a partnership between Citibank, who spit in the eyes of clients with net worths below seven figures; and Google, whose responsiveness to consumer feedback rivals that of the finest mules in the nation?
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@Dan
Couldnt agree more, except about the part that is an insult to mules.
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