[jsinai]

> Here again we have misaligned incentives. Banks optimize revenue when customers have as much debt as possible.

> While expensive to develop, the beauty of software is it can be infinitely replicated. And at scale, the marginal cost of one additional user approaches zero.

So if I understand the article correctly, companies like Wealthfront can make money by signing up more users. Their technology scales so that marginal costs become zero and they earn an income from fees, so marginal profit also scales.

But in the long term is this enough? Surely their also needs to be an alignment along the lines of savings: if users save more and if banks can benefit from this, then everyone would be doing it.