catgirl.download

@nyanotech huh! an interesting concept, thanks for sharing. I feel like this would work well in a high-interest-rate-environment like today, but when FFR~=0, savings accounts are money-losing products, so

a) "we just offer good savings accounts" is a bad business model for a fintech in the long-term; it only works in high-interest-rate environments
b) The prizes would have to be near-zero when FFR is near-zero, so it would be a deeply unattractive product in those periods

@nyanotech chartered banks, meanwhile, struggle to offer significant interest on deposits within the capital requirements and other regulatory frameworks in which they operate

so to profitably and effectively offer this product across business cycles, I think it would have to be a fintech that has the clearance to offer consumer savings accounts but isn't dependent on the interest from them, but still wants to attract customers to that savings product - perhaps a consumer neobank making money off interchange and enticing people with prizes? 🤔