You'd need a huge bankroll to get started. Financial startups aren't as easy as a social media web 2.0 site.
Look at prosper.com. Regulatory costs are astronomical. Between state and federal auditors and Sarbanes-Oxley and CRA, etc, you'll have your hands full.
Also, why would investor capital flow to you? You'd make a lower return with no upside of lower defaults, etc.
But yes go ahead. Start a low rate credit card company. I might sign up for your card!
FYI, Discover's been around since 1985 (introduced during '86 Superbowl), suit was filed in 2004 (along with a similar one by AmEx) and finally settled in October for $2.75 billion.
Look at prosper.com. Regulatory costs are astronomical. Between state and federal auditors and Sarbanes-Oxley and CRA, etc, you'll have your hands full.
Also, why would investor capital flow to you? You'd make a lower return with no upside of lower defaults, etc.
But yes go ahead. Start a low rate credit card company. I might sign up for your card!