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The Disappearing Bank

Mario Gabriele
The Generalist
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Banks are becoming replaceable. This may cause a shift towards more influencer-run financial institutions. We are approaching the era of the disappearing bank, and this may alter how society manages its surplus.

Banks and Surplus

The three major activities the bank engages in are: - Payments - Loans - Deposits When we have a surplus, we often deposit it into a bank expecting to withdraw it in the future, putting banks in a critical position of managing our surplus. 

Imperfect Allocators

When money can be made from surplus, banks simply cannot keep themselves from gambling. This raises the question: should we trust banks with how they currently operate to manage societal surplus?

Atoms to Bits

Chime, a bank made digital became the most valuable privately-held fintech company with fundraising that increased the company's valuation by 900% from $1.5 billion. A company like Shopify has been able to increase value by utilizing unique data. The company has progressed beyond integrating Stripe (an online payment processing platform) to offer consumers: - A range of products such as merchant lending that uses on-platform data to underwrite. - Bank accounts that have cashback for market spending. 

Affinity Finance 

The reason why the majority of celebrity cards such as the “Kardashian Kard” failed is because the benefits were thin and non leveraged on the relationship between the fans and the celebrities.  If integrating financial services becomes more straightforward, celebrity cards could make a comeback. We may see “affinity finance” whereby influencers with a committed audience may use their platforms to sell financial products, depending on who their audience is. 

Audience and Allocation

In the future, influencers may control surplus directly. They may use investment strategies as a form of marketing, promising to fund sectors that are of importance to their audience.

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