In fact, Robinhood is doubling down and has even launched its own crypto wallet where you can directly connect to Defi Applications.īrian Armstrong and Coinbase realized this approach of user acquisition followed by decentralization even sooner, starting with a more centralized fintech approach and only recently launching a defi wallet + their own blockchain. In fact, Apple, the brand with the most recognition on the fintech list above has already shown us what's possible by merging good tech, banking and attractive yields.Īpple’s new high yield savings account gobbled up nearly $1 Billion in deposits in FOUR DAYS.Įvery single one of the fintechs (except Apple) have a crypto offering (direct or indirect exposure). They are depositing the $ at one or more of the many “program banks” that these fintechs use behind the scenes. The masses have not caught on yet, but as more banks fail, ordinary people will realize that the US Govt / The Fed have already made clear they will NOT let depositors take the hit.Īnd seeking refuge from inflation ravaging their savings.folks will begin exploring the fintech options with their higher yields and realize they are not actually parking their cash with some hot tech company. Wealthfront - 4.3% APY (FDIC up to $5M).Betterment - 4.35% APY (FDIC up to $2M).Robinhood - 4.15% APY (FDIC up to $1.5M).Meanwhile, fintechs are luring depositors w/ high yield accounts w/ ZERO min balance and much better terms on FDIC insurance. Bank of America - 0.01% APY (FDIC only up to $250K).Wells Fargo - 0.15% APY (FDIC only up to $250K).3 Month Treasuries are paying 5.2% APY (as of this writing). And they're doing so at a hefty price tag.
People are obviously running to perceived safety.
After SVB Collapse, deposits at BofA grew by $15 Billion.There are two seemingly uninteresting forces playing out right now in retail banking that could shape the future of the entire sector:ġ - Folks fleeing small & regional banks moving cash to big banksĢ - Fintechs gobbling up new deposits w/ high APY checking & savings accounts
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