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Thanks so much Melissa.
So after what you've heard will go bank be the wave of the future and -- should or should you watch for it.
With me now is mark Calabria director of financial regulation studies of the Cato -- you welcome back to the show didn't your reaction when you think about all that's.
Well let me say first I'm a big fan of mobile banking I think this is definitely part of the wave of the future.
But you touched a lot of the important points and particularly the cost structure.
Francis and it costs annually about 300 dollars to maintain a checking account.
So I think that they'll be able to get the cost of that -- maybe a third of that but they've still got to be able to get their customers willing to pay.
567 dollars a month on average for them to breakeven on -- side of it.
So I I do worry about the cost structure of again that you know they're trying to do essentially a fee for service model kind of a debit card model of banking and of course that sets -- the whole -- -- the Durbin amendment.
And whether -- be able to actually make that much -- -- interchange.
So I think it's really have a target audience you know a lot of people under thirty who -- very much big mobile users I think will be interested in this.
But I think once you start to get about people above thirty you're gonna see a lot of skepticism.
You raise the issue about primary account.
I really think the way this is gonna work at first -- You're gonna start seeing people put small amounts in this -- not -- -- no way I'm gonna move tens of thousands of Sony might put a couple hundred dollars in this to see how it works.
And really see kind of how that that develops what they're taken advantage of what were rightly so the tarnished reputation is so much the baking industry in general.
But I think the long run impact of this is going to be it's gonna force the Bank of America's the JP morgans of the world to pay attention to this -- again they are doing mobile banking.
But I think it's gonna be more aggressive more pressure on the -- at the end of the day of course competitions a good thing.
Even -- go -- is the -- -- necessarily survive the long run yeah I don't know that and I don't know that but -- to be to bring competition this markets are great I think.
Right I guess I mean -- -- listing things about it's got to be for someone who doesn't want -- it very much service at all you know I mean you don't want you.
Have a relationship with the bank where you have your money on deposit and you also have a mortgage with -- you're trying to build a larger portfolio.
-- -- for a younger person without question -- not trying to build the big relationship that's fine.
I don't know how he makes enough money to stay in business I don't see it as a profitable model unless they.
Somehow raise their fees which defeats the whole purpose I also see the banks getting really serious I mean I remember their response to people like Charles Schwab.
When they said go ahead and -- anyone's ATMs for free and -- free loading.
Off the whole system that banks have invested so much money -- to have these ATMs out there they're gonna fight back.
This is going to be a tough giving you mentioned that you know the cost structure that thing that concerns me is well.
I certainly believe all one side that they can reduce the cost of maintain -- count because the cut it up to bricks were to cut the labor.
But we've seen this with a standalone online banks have had to pay a lot more for their deposits and suffer these guys to raise the cost of funds I think it's going to be higher -- it's going to be for compare -- banks.
And so they're gonna get squeezed on that and of course.
They don't really have much of a planted a whole lot of -- on the outside and in any -- but.
Your point about.
Where do you go to get a mortgage you mean again you know that the model of we're gonna sell you a suite of products that's of course been into the holy Grail of banking and nobody's actually ever been -- -- off completely.
But this does a lot to it so I do ask question here how they got -- show you other products.
You know even if you don't I am I going to our branch every couple months may -- but I liked to have that option.
Break I think a lot of people do even if you don't go or branch and a daily basis.
It is nice and it was there.
Yet mark do you have a monitor -- did you see that he was about twelve years all that that make you nervous -- -- just -- -- jealous because he's out they're doing something colon.
You know they have made an image exactly exactly and are angels of -- -- you so much mark thanks for and I don't have a great weekend so.
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