Bank 2.0. How would you build a better bank?
dkokelley: To start, my Bank 2.0 would do a lot to change the way credit/debit cards are authorized. clawrencewenham had some great ideas about this here: http://news.ycombinator.com/item?id=948965Basically the owner of the card would have final control over charges on it. The bank could automatically call or text you and ask for a code before authorizing a transaction, and the cardholder would have white and blacklists with custom rules about when/how much a particular merchant could charge.In my bank, I would probably stay away from mortgages and credit cards (I could offer them through a 3rd part supplier, but I wouldn't carry any of the balances). This is to make reserves more manageable. Today's banks have massive departments dedicated to managing reserves and working with overnight and discount loans. By eliminating/outsourcing these functions, I think more could be dedicated to serving the customer. Most of the money for the bank would be made through an agreement with someone like Visa or Mastercard, so that whenever someone charges their card, part of the fee that merchants pay goes back to my bank as the card issuer.