Why The Next Wave Of Banks Already Have More Trust & More Capital

If you think about financial services companies, they have the lowest amount of trust amongst consumers and that really happened because of the big financial collapse of 2008. Consumers inherently don't trust big banks. But look who they do trust. They trust technology companies. And the funny thing about technology companies is they're the ones that are capitalized right. Now look at 2007, the four biggest capitalized companies were Citibank, bank of America, ICBC and JPMorgan Chase. Well guess who the biggest four most capitalized companies are today? And what's the number one rule for being a financial service company? Be capitalized. So I think these companies are going to start to enter banking. Amazon's already making small business loans, right? Apple through Apple Pay and now their peer to peer payments, they're getting heavily into the space, same with Facebook. So I think these companies banking is going to be one of the next places these companies are going to enter and it's going to put a ton of pressure on traditional banks CR because they lack the trust and they lack the capital.