If you've been following Eco for a while, you know that the way our money moves is, in a word, broken.
But what about new tech like Zelle? Neobanks? Or other fintech apps?
Don't they solve the problem?
Nope.
We'll explain below:
But what about new tech like Zelle? Neobanks? Or other fintech apps?
Don't they solve the problem?
Nope.
We'll explain below:
Let's talk about Zelle.
It's a group of the biggest banks sharing "risk" info with each other.
For each transaction, they agree on whether it's "risky" or not.
Not risky? They credit/debit the account instantly.
But they still use the inefficient ACH system to settle accounts
It's a group of the biggest banks sharing "risk" info with each other.
For each transaction, they agree on whether it's "risky" or not.
Not risky? They credit/debit the account instantly.
But they still use the inefficient ACH system to settle accounts
Why does this matter?
B/c with Zelle, money isn't actually moving right away + banks still make a risk decision.
They don't let you do what YOU want with your money.
Zelle also has a weekly limit on spending and can arbitrarily reject your transaction.
B/c with Zelle, money isn't actually moving right away + banks still make a risk decision.
They don't let you do what YOU want with your money.
Zelle also has a weekly limit on spending and can arbitrarily reject your transaction.
What about neobanks?
They're typically tech companies partnered with a small bank.
The bank provides services, and the tech partner provides a slick UI to target hyper-specific audiences.
They're typically tech companies partnered with a small bank.
The bank provides services, and the tech partner provides a slick UI to target hyper-specific audiences.
B/c neobanks aren't technically "banks," they often can’t take the same interest from you like big institutions.
So they make money by capitalizing on debit card interchange and subscription fees.
So they make money by capitalizing on debit card interchange and subscription fees.
TLDR:
Zelle, neobanks, or other sleek fintech products won't solve the systemic problems of our financial system.
We need an entirely new way to spend, send, save, and make money.
That's what Eco is all about.
Read more here:
eco.com/blog/new-techn…
Zelle, neobanks, or other sleek fintech products won't solve the systemic problems of our financial system.
We need an entirely new way to spend, send, save, and make money.
That's what Eco is all about.
Read more here:
eco.com/blog/new-techn…
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