'Beware the Trojan Horse': Comments of the Week
January 24, 2014 8:59 AM
American Banker readers share their views on the most pressing banking topics of the week. As excerpted from the Comments sections of AmericanBanker.com articles.
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On banks quitting the deposit advance business amid regulatory scrutiny:
"Finally some common sense prevails."
Related Article:
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On banks quitting the deposit advance business amid regulatory scrutiny:
"Banks
can just move these customers into overdraft programs and get higher fees. Leave it to the regulators to destroy the more progressive and transparent product and ignore the more prominent and deceptive product, when the two are perfectly substitutable for the consumer."
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On whether carriers like T-Mobile can do prepaid better than banks:
"Correct question is 'are prepaid cards from nonbank retailers better than bank accounts for most Americans?'"
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(Image: Bloomberg News)
On T-Mobile's launch of a checking account alternative for the underbanked:
"Beware the Trojan Horse. While many traditional bankers may see services like this as a 'gift' that will take their lower profitability customers, how do we stop the much sought after digital natives from leaving as well?"
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On bank peer-to-peer payment alternatives:
"Trust in banks is really the only explanation for why P-2-P products from PayPal and Square haven't taken off yet.
At what point will consumers' desire for better banking products outweigh their desire to work with traditional banks? There has to be a tipping point."
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On CEO Michael Corbat saying Citigroup can no longer be 'everything to everyone':
"They're just discovering that now?" (via Twitter)
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(Image: Bloomberg News)
On Bitcoin backers seeking FDIC-like insurance:
"Can the private sector do what the FDIC does? I think so." (Via Twitter)
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(Image: Bloomberg News)
On how to judge a bank CEO:
"There are bank franchise attributes that are independent of the CEO, and it would be unfair to penalize a CEO for them. JPMorgan Chase will never be able to match the ROE of Wells Fargo simply because JPM's business mix is different."
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(Image: Bloomberg News)
On how to judge a bank CEO:
"Sustainability of income/stock price/liquidity = ultimate judgment." (via Twitter)
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On a call for a return to boring, old-school banking:
"Well
if the competition from non-regulated, nonbank players would cooperate ..." (Via Twitter)
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On the biggest mistakes banks make in mobile app design:
"Expecting a full-fledged online banking experience on a mobile platform is also problematic as I believe online banking is still broken. It is still deeply rooted in a checkbook register replacement with new technology bolted on top."
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