Note from the Publisher: Apologies for the headline, but it really says it all. Deposit-centric fintechs have not gotten much attention, but this article argues that “this isn’t your grandfather’s bank anymore”. This shows the many ways basic banking, including the little old boring deposit, is coming into the 21st century and highlights some new fintech entrants, one of which is backed by Paypal co-founder Peter Thiel, into the space.
“There’s one sector of finance that really doesn’t get a lot of airtime when it comes to fintech – deposits. Checking accounts, savings accounts, transaction accounts – while they’re the bread and butter of banking, they’ve been relatively untouched since they were first invented. You put money in, and, if you’re lucky, earn a little interest before you take the money out.
In today’s world, the humble bank account hardly feels revolutionary, yet the brilliance of it is we all need one. Is there an opportunity here for a fintech startup to slice away this part of a bank’s core business, by adding a little flavour to the whole deposit experience?
Saying yes to this question is easy. But working out ‘where to next’ means nutting out the exact problems banks and account holders face when using and setting up deposit accounts. Also, we shouldn’t avoid asking ourselves the hard questions. One being, if it ain’t broke, do we really need to fix it?”