[nissimk]

Exactly. If these small players start by acquiring deposits and investment accounts, they will be offsetting those deposits from the big banks. Once the small entrants reach a certain size they will themselves be able to play in the larger financing space thus competing with the big banks in more areas.

Hedge funds have been doing this for years, and some of the largest hedge funds now participate in many of the lines of business that are traditionally thought of as investment banking.