The power of fintech... the Starbucks Card. Due to their size and customer loyalty, consumers are not afraid to keep balances on their account knowing they will use it eventually.
Consumers hold, collectively, $2bn in balances on their Starbucks account. To put this in perspective, 85% of all U.S banks have less than $1bn in total assets. So customers, unknowingly provide Starbucks with a $2bn loan at 0% interest. Kim Jung Hana, Chairman of Hana Financial Group said "it will be fine to call Starbucks an unregulated bank, not a mere coffee company."
Starbucks could in theory create a widely available mobile payments system by partnering with a BaaS provider...since every company essentially will become a fin-tech company eventually!
Next, why McDonald's is a real estate company and Harvard University is really a wealth management company.
#fintech #tech #payments #banks
Consumers hold, collectively, $2bn in balances on their Starbucks account. To put this in perspective, 85% of all U.S banks have less than $1bn in total assets. So customers, unknowingly provide Starbucks with a $2bn loan at 0% interest. Kim Jung Hana, Chairman of Hana Financial Group said "it will be fine to call Starbucks an unregulated bank, not a mere coffee company."
Starbucks could in theory create a widely available mobile payments system by partnering with a BaaS provider...since every company essentially will become a fin-tech company eventually!
Next, why McDonald's is a real estate company and Harvard University is really a wealth management company.
#fintech #tech #payments #banks