Slideshow 'Bank-Bashing Will End When the Check Clears': Comments of the Week

Published
  • July 03 2015, 7:30am EDT
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American Banker readers share their views on the most pressing banking topics of the week. Comments are excerpted from reader response sections of AmericanBanker.com articles and from our social media platforms.

On whether fintech companies want to beat banks or get bought by them:

"Personally [I] think most of these fintech companies exist in hope of being bought by a bank. Their bank bashing will end as soon as the check (sorry, electronic transfer) clears."

Related Article: Are Virtual Banks Just a Flash in the Pan?

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On whether traditional banks will be able to keep up with mobile-first neobanks:

"The simple fact is you've got a much bigger problem than Moven or Simple's pretty front end. If you can't deliver every product you have in real time via a phone within the next two years, it is going to decimate your bottom line. It's not about full service, it's about mobile service—something you guys still aren't close to competing on with the neobanks."

Related Article: Are Virtual Banks Just a Flash in the Pan?


Suggesting that banks may be getting a little ahead of themselves with talk of cars that function as digital wallets:

"Let's work on same-day ACH settlement first."

Related Article: Forget Self-Driving Cars, Get Ready for Self-Banking Cars


On the rising popularity of long-term subprime auto loans:

"The mortgage boom and bust was based on the firmly held but incorrect belief that home prices never fall. Now we have the equivalent argument that auto borrowers won't default because they need their cars. Didn't we learn that you can't create a good security by bundling crappy paper?"

Related Article: Longer Leash for Subprime Car Buyers Stokes Debt Concern

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On allegations of workplace discrimination at the Consumer Financial Protection Bureau, which has itself accused some of the companies it regulates of discriminatory practices:

"One law for the kings. One law for the rest of us."

Related Article: Dems' Defense of CFPB: Let's Talk About Something Else


In response to an argument suggesting that Ripple Labs' blockchain lacks the security and settlement-risk reduction of Bitcoin (<a href="https://www.reddit.com/r/Ripple/comments/3b7wuw/lk_at_that_ripple_got_a_mention_in_todays/" target="_blank">via Reddit</a>):

"Ripple's ledger is immutable, settlement risk is external to the system and (looking at Mt. Gox for example) also abundant in Bitcoinland … because the main risk in Ripple is settlement and counterparty risk is the exact reason why Ripple Labs is going after banks and other trusted institutions that mainly have high trust in the community and relatively low-risk values."

Related Article: Why the Bitcoin Blockchain Beats Out Competitors


In support of the idea that the Bitcoin blockchain will beat competitors because it's a public resource (<a href="https://www.reddit.com/r/Bitcoin/comments/3b76yc/american_banker_why_the_bitcoin_blockchain_beats/" target="_blank">via Reddit</a>):

"Why build and incentivize a private road when there is a highway going everywhere with an on-ramp right out front of your house."

Related Article: Why the Bitcoin Blockchain Beats Out Competitors

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On the recommendation that Harriet Tubman replace Alexander Hamilton on the $10 bill:

"Harriet Tubman would bring diversity to our currency and she would be a symbolic acknowledgement of the importance of ending slavery as well as granting women the right to vote. She was also a leader, rather than the wife of a leader. None of the other options recommended compare."

Related Article: The $10 Bill Women in Banking Would Like to See


On the Office of the Comptroller's concerns about cybersecurity risks for smaller banks:

"I assume that [OCC deputy comptroller for operational risk Beth] Dugan does know that nearly all smaller institutions are dependent on third-party service providers like FIS, Fiserv and Jack Henry for their IT and cybersecurity programs. Very few community banks have their own customized, in-house, cybersecurity packages. So maybe the OCC should look harder at the service providers?"

Related Article: OCC's Risk Report Is Tale of Two Banking Sectors


On the reveal that the CFPB is planning to cite three major auto lenders for allegedly charging minorities more on loan markups (<a href="https://www.facebook.com/AmericanBanker" target="_blank">via Facebook</a>):

"The rate markup that allows the dealer to discriminate just needs to go away for all lenders."

Related Article: CFPB Nears Landmark Victory Against Three Large Auto Lenders