The Fintech Banks Are Coming: Why You Should Care

The fintech banks are coming now that regulators are issuing them national banking charters. That could upend the traditional banking industry, potentially benefiting consumers in the form of lower costs and more services. [Read More]

Summary… * Machine-Made

With regulators accepting applications from financial technology startups for national bank charters, traditional banks are going to see a lot more competition.
The influx of bank fintechs is already happening, with fintech banks Simple, Chime, Varo and Moven offering checking accounts, overdraft protection, savings accounts, and direct deposit.
It will combine the attributes of a checking and a savings account into one interest-earning deposit account that has an APY of as much as 1%.
It is the latter services that are setting SoFi apart from traditional banks and providing benefits to consumers they aren’t accustomed to with their traditional bank.
In what should be a big sigh of relief for traditional banks, it doesn’t plan to become a bank but rather a partner.

Opinion… * Man-Made

The #FinTech banks are coming. This is potentially bad news for traditional banks, as there will be a lot more competition in the market. This is good news for consumers, as this shoud result in better service and lower costs. #Trend

Source: Forbes