We have always had a penchant for keeping a watchful eye on the business of banking and how it dovetails into operational practice on our platforms. We are designed to be a digital faceplate upgrade to facillitate a non transactional conduit for a banking entity to more effectively engage with their customers infused with the sticky content of hyperlocal targeted content.
Have you ever wondered why you never see banks cannabilizing each other like , for example, cell phone companies? We have all seen the incessant ads trumpeting one service over the other and brazenly offering replacement new phones or cash rebates to switch.
Can you imagine the developer of a housing complex solicting banks for the best deal on mortgages on his initial sales and when one local bank locks in a fixed rate that is somewhat competitive another bigger behemoth bank swoops in and blows them away with a lower rate?
There are 2 words that keep banks “in their lane” and they are PREDATORY PRACTICE. The Federal Reserve here has a robust enforcement apparatus (Comptroller of the Currency) that is designed to specifically address what they consider to be destructive economic practices with banks regarding competitive activities that are perceived as damaging to the public at large. In theory a behemoth like Chase could crush a much smaller local bank that serves a given community by undermining their mortgage business by offering cheaper rates due to their larger capital endowment but at the expense of the smaller bank which in theory could curtail OTHER functions which in theory could be construed as damaging to the local community at large.
The looming anti trust case in Washington DC with Google also enters into this scenario as the data scraping and the brazen intrusions into one’s online “world” will soon need your permission to do which alters dramatically the ability for all business to obtain the key data points that are needed to pitch products.
Welcome to the Brave New World of data collection and business