
Is Small Business Banking Next in Line for Disruption? - dangerman
http://www.americanbanker.com/news/bank-technology/is-small-business-banking-next-in-line-for-disruption-1077659-1.html?zkPrintable=1&nopagination=1
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pbreit
Next behind...? Credit cards? No, haven't been disrupted. Consumer banking?
No, hasn't been disrupted. Mortgages? No. Consumer/eduction lending? Sorta, I
guess. Corporate banking? No.

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toomuchtodo
Mortgages? Possibly: [http://techcrunch.com/2015/11/24/this-could-be-the-
mortgage-...](http://techcrunch.com/2015/11/24/this-could-be-the-mortgage-
industrys-iphone-moment/)

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pbreit
First, it's from Quicken Loans who is huge. Second, it's just a-ight at this
point (I tried it). Third, "could be".

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Gys
A similar disruptive bank started in the Netherlands this week. Its a real
bank accessible by app only: [https://www.bunq.com/](https://www.bunq.com/)

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branchless
Can they issue new money via debt? If no then it won't disrupt much.

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Gys
No, they (currently) do not allow debt. Why is specifically debt related to
disrupting ?

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mikecb
Issuing loans is how banks make money.

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fennecfoxen
Well, they also make money from fees. Especially, in the US, check-card swipe
fees (invisible to the casual user since they're assessed on the merchant).

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nickpsecurity
None of these tech-focused innovators ever mention their plan to counter the
incumbents most potent weapon: lobbyists. The same way they dodged liability
in ACH, etc issues all these years is the same way they'll likely counter
startups.

Alternatively, they can just buy up the best-of-breed, patent their
technologies, and use that to force costs up. So many ways they can play it.
And they're good at eliminating threats to their profitable, predictable,
status quo.

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btmerr
Hi. I'm Brian, the cofounder and CEO of Seed.

While we have strong opinions about regulatory and legislative changes that
would enable innovation, it's impractical to attempt systemic disruption as a
seed stage company.

Our mission is not to change banking just for the sake of it. We are focused
on providing a better service for our members.

There's a lot of room for improvement, even within the current system, and by
focusing on things we can do rather than things we wish we could do, we'll be
able to make positive progress.

Many well meaning startups have pursued immediate disruption and have failed.
Our view is that if we are successful within the current environment, we'll
have a better chance of being able to help move things in a positive
direction.

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nickpsecurity
Four of my coworkers agreed that this comment has excellent PR value for
mainstream market. It uses a whole lot of words say basically nothing but with
much optimism and faith in the company as the expected result. Well-written.
:)

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btmerr
I'm Brian, the cofounder and CEO of Seed. I'm happy to answer any questions
anyone has.

I'll be on a flight for the next few hours, but I'll check in when I land.

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rihegher
What Would you tell to a frustrated french entrepreneur Who like seed concept
but knows it will takes years before such a solution can be available in
France? To put things in context there are some pure online banks that have
disrupted the bank deposit such as boursorama or fortuneo but outside of
traditional banks there is no inovative banks available for companies. I guess
there must be a reason for that which i can't grab.

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omginternets
As a fellow French entrepreneur: don't start your company in France.

That's really the only viable solution at this stage.

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jpetitto
Isn't Square attempting to move into this space?

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Eleutheria
Phone banking is where the disruption is.

Cue M-Pesa.

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iamsohungry
No. [1]

[1]
[https://en.wikipedia.org/wiki/Betteridge%27s_law_of_headline...](https://en.wikipedia.org/wiki/Betteridge%27s_law_of_headlines)

