[toomuchtodo]

As a financial services provider, you can make money in a couple of ways: net interest [1], loan interest (spread between your deposit interest and interest rates you price for credit products), fees, and interchange (skim off debit and credit card transactions). Which matrix of fees you elect to implement is a function of your customer persona(s), what they value, and sensitivity to those income levers.

How do you pay to operate your business without income? You need to pay for people, infra, and other costs of banking provided. The only model that works for that is postal banking or deposit accounts issued by the central bank, where your nation state offers banking as a utility in some fashion.

[1] https://www.kalzumeus.com/2019/6/26/how-brokerages-make-mone...

[exabrial]

Interest on deposits includes IORB from the federal reserve, which is the safest investment for them, current > 4%

[imtringued]

This is the answer. Running a bank is expensive, even if from the customer's perspective all the bank is doing is provide a website that shows them a number. But that number is probably the most important single number in their life.

Since people are resistant to paying monthly account fees, banks will have to hide the fees in ways that you won't immediately notice. In a way, customers are deceiving themselves. If they just paid the monthly fees, the cost of their bank account would be highly predictable.

[philipwhiuk]

> How do you pay to operate your business without income?

Easy - VC funding :P

[desibanda]

SVB crying in the corner :’(