<story><title>Banks beware, Amazon and Walmart are cracking the code for finance</title><url>https://www.reuters.com/business/finance/banks-beware-outsiders-are-cracking-code-finance-2021-09-17/</url></story><parent_chain><item><author>jasode</author><text>There&amp;#x27;s been a long history of non-finance companies branching out into finance.&lt;p&gt;- Sears: had Allstate for insurance and Discover Card for credit.  Unlike most &amp;quot;branded&amp;quot; credit-cards, Sears did its own underwriting for the Discover Card i.e. they owned the Greentrust bank behind that card.  (That is unlike Amazon Prime card being underwritten by Chase Bank.)&lt;p&gt;- G.E. General Electric:  financial services GE Capital like loans and leases&lt;p&gt;I remember finding out that many music stores use GE Capital to finance the inventory of all their guitars hanging on the wall.  (Industry lingo of &amp;quot;floor planning&amp;quot;.[1]) Sort of strange to realize that a lightbulb company has a bigger subsidiary that sells financial services.  It&amp;#x27;s more profitable to make money by selling money than by manufacturing lightbulbs.&lt;p&gt;[1] &lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;www.google.com&amp;#x2F;search?q=ge+capital+floorplan+financing&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;www.google.com&amp;#x2F;search?q=ge+capital+floorplan+financi...&lt;/a&gt;</text></item></parent_chain><comment><author>MomoXenosaga</author><text>I see a lot of fintech startups but there is absolutely 0 money in providing basic bank accounts for paupers.&lt;p&gt;It&amp;#x27;s why companies like Revolut and Bunq always end up doing what ordinary banks are doing: upselling. Shitty insurance and expensive creditcards is where the money is. Also transaction fees up the wazoo. 
Looking into it made me realize traditional banks aren&amp;#x27;t really evil- they are kept under tight government regulations that forces them to take any customer. Even the ones that make them no money. No I&amp;#x27;ll be sticking with €15 per year account.</text></comment>
<story><title>Banks beware, Amazon and Walmart are cracking the code for finance</title><url>https://www.reuters.com/business/finance/banks-beware-outsiders-are-cracking-code-finance-2021-09-17/</url></story><parent_chain><item><author>jasode</author><text>There&amp;#x27;s been a long history of non-finance companies branching out into finance.&lt;p&gt;- Sears: had Allstate for insurance and Discover Card for credit.  Unlike most &amp;quot;branded&amp;quot; credit-cards, Sears did its own underwriting for the Discover Card i.e. they owned the Greentrust bank behind that card.  (That is unlike Amazon Prime card being underwritten by Chase Bank.)&lt;p&gt;- G.E. General Electric:  financial services GE Capital like loans and leases&lt;p&gt;I remember finding out that many music stores use GE Capital to finance the inventory of all their guitars hanging on the wall.  (Industry lingo of &amp;quot;floor planning&amp;quot;.[1]) Sort of strange to realize that a lightbulb company has a bigger subsidiary that sells financial services.  It&amp;#x27;s more profitable to make money by selling money than by manufacturing lightbulbs.&lt;p&gt;[1] &lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;www.google.com&amp;#x2F;search?q=ge+capital+floorplan+financing&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;www.google.com&amp;#x2F;search?q=ge+capital+floorplan+financi...&lt;/a&gt;</text></item></parent_chain><comment><author>JackFr</author><text>Don’t forget GMAC - General Motors Acceptance Corp. The joke back then was that GM was a perennial money loser and only existed as a loss leader, just so GMAC could make loans.</text></comment>