Re:Stripe can make automatic LLCs but a wire transfer from C...
by syshum on Wednesday January 15, 2020 @04:26AM
(#22052866)
>>>also worth noting is that a significant portion of a large bank's customers are over middle age
That maybe true today, 30 years from now those boomers will be dead.
>>The other misconception is why banks continue to operate this way, which I personally believe comes down to prioritizing risk aversion and fraud resistance over other attributes
There are many ways to solve for both, other nations have done it successfully
ACH for example is a shit show and should have been replaced decades ago, its biggest "security" features is that fact that it is slow to complete a transaction to allow humans to catch an error or fraud....
US banking is not about risk aversion or fraud control, it is about risk shifting and CYA. They do not care about preventing fraud, they care about making sure they do not have a pay for fraud by shifting liability to either consumers, businesses, or another bank
That maybe true today, 30 years from now those boomers will be dead.
>>The other misconception is why banks continue to operate this way, which I personally believe comes down to prioritizing risk aversion and fraud resistance over other attributes
There are many ways to solve for both, other nations have done it successfully
ACH for example is a shit show and should have been replaced decades ago, its biggest "security" features is that fact that it is slow to complete a transaction to allow humans to catch an error or fraud....
US banking is not about risk aversion or fraud control, it is about risk shifting and CYA. They do not care about preventing fraud, they care about making sure they do not have a pay for fraud by shifting liability to either consumers, businesses, or another bank