Wiki: Glass-Steagall Act
The plaque at the old Shakey’s pizza parlor said it all,
“Shakey’s doesn’t cash checks, the bank doesn’t make pizza.”
Owning the technology infrastructure and the “user experience” is extremely lucrative. On the other side, being a bank can be lucrative but it also requires that you maintain much of the “plumbing” of the banking process which is a) very cumbersome, b) heavily regulated, and c) becoming commoditized.
Editorial Word on Social Media Banks
The Lord would have us understand that no one’s spiritual lot can be improved by being a lender or a money changer. Overall Social Media Banks are disguised as advertisements, but it is Big Data that sells your confidential assets, emails, IP address & other very confidential information to other corporations. Facebook’s database should be printing its own dollar anytime soon. In large, big companies will play it safe with new concepts, especially with old institutions like banks. The big 4 (Google, Amazon, Facebook, and Microsoft) will stay in their respective lanes as a long-term approach and might dabble in a few financial projects in the future. We would rather suggest – banks should become Google, Amazon, etc. by embracing technology and providing the next generation customer satisfaction and user experience consumers. If you stop and think about all the disruption (think of the UBERs of the world etc) it is all orienting value around the customer using new models and technology. We don’t see why the archaic bank models would be any different, as contrary to pointed out above, it may just take longer to gain trust. In the end, we Pakistanis had always listened to the notion that Israel controls the World Online economy. The plastic money is a hoax. Here you go, guys. The real New World Order.
