Re:Stripe can make automatic LLCs but a wire transfer from C...
by jariel on Tuesday January 14, 2020 @05:27PM
(#22049885)
"risk aversion and fraud resistance over other attributes"
It runs much deeper.
Most of these functions are 'middle/back office' for the bank, they were never seen as important. The 'Ops' part was always just operational labour, things done by 'workers' etc.. It's not 'banking' to the banks.
Software at banks often parallels archaic processes, established for some very good reason long ago, but continue to exist only due to incumbency or possibly due to regulatory requirements.
And because it's finance, the security and stability requirements are much higher, giving new meaning to 'break fast and new things'.
When you add in the fact banks are incredibly incumbent and resistant to change, you get a Kafka-esque web of bureaucracy, inefficiency, arbitrary complexity etc..
I don't see any consumer oriented, 'Stripe-like' modern bank taking over either.
It runs much deeper.
Most of these functions are 'middle/back office' for the bank, they were never seen as important. The 'Ops' part was always just operational labour, things done by 'workers' etc.. It's not 'banking' to the banks.
Software at banks often parallels archaic processes, established for some very good reason long ago, but continue to exist only due to incumbency or possibly due to regulatory requirements.
And because it's finance, the security and stability requirements are much higher, giving new meaning to 'break fast and new things'.
When you add in the fact banks are incredibly incumbent and resistant to change, you get a Kafka-esque web of bureaucracy, inefficiency, arbitrary complexity etc..
I don't see any consumer oriented, 'Stripe-like' modern bank taking over either.