Digital banks are mostly designed to fail. Not because of their technology but because of their balance sheets. They have the highest cost of funds, they will never overtake the incumbent banks to secure cheap and stable sources of deposits. Their growth is fuled mostly by incentives and not by a real business idea that customers would want to buy into. But mst important of all, they all want to become the very banks they say they are replacing.
If digital banks are designed to fail
If only a few digital banks are designed to be profitable, should digital bankers be whistling in the dark
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