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Reports of our death are an exaggeration: Difference between revisions
Reports of our death are an exaggeration (view source)
Revision as of 11:53, 13 January 2023
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|Awesome: state of the art, natively functional, at cutting edge, well-funded, well-understood, robust, resilient. Ok could be hacked | |Awesome: state of the art, natively functional, at cutting edge, well-funded, well-understood, robust, resilient. Ok could be hacked | ||
|Who doesn’t love Amazon? Who wouldn’t love to have an account at the iBank? Imagine if banking worked like Google Maps! | |Who doesn’t love Amazon? Who wouldn’t love to have an account at the iBank? Imagine if banking worked like Google Maps! | ||
|OK there | |OK there is a bit of investment required here — and regulatory capital is a thing — but nothing is insurmountable with the Amazon Flywheel no? | ||
{{aligntop}} | {{aligntop}} | ||
|'''Winner''' | |'''Winner''' | ||
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|'''Banks''' have the edge right now. But look out white-shoe types: The techbros are coming for you. | |'''Banks''' have the edge right now. But look out white-shoe types: The techbros are coming for you. | ||
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Apple, Amazon, and Google ''wipe the floor with any bank on technology'' — I can go with that — and have materially better standing with the public. Who doesn’t love Amazon? Who ''does'' love the Wells Fargo bank? The only place where banking presently has an edge is in regulation. It’s wildly complex, fiendishly detailed, the rules differ between jurisdictions, and the perimeter between one jurisdiction and the next is not always obvious. To paraphrase {{author|Douglas Adams}}: “You might think GDPR is complicated, but that’s just peanuts compared to MiFID.” | |||
Let’s park a few uncomfortable facts and give Me Perez the benefit of the doubt: | But, but, but — there are any number of artificially intelligent startups that can manage that regulatory risk, right? The [[legaltech roll of honour]] refers. | ||
But really. Let’s park a few uncomfortable facts and give Me Perez the benefit of the doubt: | |||
Firstly, | Firstly — if it is such a cinch, where the hell are they? It is 2023, for crying out loud. None of Apple, Amazon, or Google as so much as cast a wanton glance in the direction of the financial services industry, despite the revenue opportunities. ''Something'' is keeping them away. Maybe the regulatory piece is a lot harder than it looks. | ||
But that’s not it: if it were then you would expect tech firms to be awesome at ''unregulated'' financial services. But — secondly — ''they’re not''. We’ve been treated to a ten-year, live-fire experiment with [[Cryptobabble|unregulated financial services]], from which the traditional financial institutions have mainly stayed away, ''and it hasn’t gone well''. The [[cryptobro|cryptobros]] have rediscovered, and promptly fallen down, pretty much every manhole known to the world of money management — they’ve even found some new ones of their own to fall down that money management didn’t know about. Helpfully, [https://web3isgoinggreat.com/ Molly White] is keeping a running score. Crypto, despite its awesome tech and fabulous branding, has been a disaster. | |||
Secondly a company that makes cool gadgets has as much change of keeping its branding following a pivot to banking as does it is a toy factory could that moves into dentistry. | Secondly a company that makes cool gadgets has as much change of keeping its branding following a pivot to banking as does it is a toy factory could that moves into dentistry. | ||