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Kurt Laitner

The Financial Services Club's Blog: If banks are like oil, build better vehicles - 0 views

thefinanser.co.uk/...oil-build-better-vehicles.html

*money banking

shared by Kurt Laitner on 10 Nov 10 - No Cached
  • Deposit accounts are the core of banking.
  • Summary: no firm and no individual will fundamentally change the core of banking because it is built upon licences, infrastructures, agreements, global policies, governmental forces, regulatory management and more ensuring that the status quo is maintained.
  • which is referenced as social currency, although it’s not really as it starts and ends with the oil: banks and money.
  • ...4 more annotations...
  • The bottom-line is that as we talk about the weaknesses and failures of the banking system, we are missing the point. The banking system is protected and will take decades to change, because it is like oil refining. That is why none of the services at the core heart of the banking industry: the deposit account, the checking account, the money transmission have opened up to real competition over the years. Even with the mobile and wireless internet. It will ... but that is like changing the oil industry.
  • First you have to find an alternative to oil, then you have to convert everyone off their old vehicles to the new fuel-based alternative. More on that tomorrow.
  • Meanwhile, there is plenty of scope to add functionality and enrichment to the core of banking.
  • So should the focus be on building better tools upon the base of banking, rather than trying to replace the base? Is it better to build more efficient vehicles that run on oil, rather than trying to get rid of oil?
  • Kurt Laitner on 10 Nov 10
     
    an excellent article, making several important points, including the hilighted bits below - very important distinction between 'new' currencies that piggy back on current vs new currencies that fly solo - we all need to be very clear about the game we are playing
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