New Idea For Me . Online Banking

[wsp9]

A friend of ours worth many millions says I should start an online Bank! I started to analyse and ask questions and he said "Just Do It!". My returns will be huge he says, bigger than any adsense or aff money. So I'll do it.

[inbound]

What?

Does the guy who suggested it have any idea of the legislation and regulation involved?

What about gaining customers, do you have a reputation that would make people trust you with their money?

I would spend no more time on this, I can say with 100% conviction that if this is a new idea to you then you have no chance of getting it off the ground.

Sorry.

[tophat]

I worked in finance before. If your bank will be based in North America or Europe, there are tons of federal and state regulations involved. Just the lawyers' fees for drafting proposals and agreements to deal with the regulations will run into hundreds of thousands if not millions. Plus every bank has to provide a certain percentage 3-10% of total deposits they intend to accept which is held by the Federal Reserve or Central Bank. By the time you even get the govt. approval to go ahead it will be a year or more. Even if your bank is based overseas you could run into trouble with authorities if you accept deposits from non-citizens of the country your bank based in. And did you think about the tax implications and compulsory external audit requirements for banks? Add another big chunk of money for this annually. All these costs have to be planned before you even open the door.

[rainydazed]

Put me down for a loan, a big one, too.

[ronin]

A friend of ours worth many millions says I should start an online Bank!

Perhaps you should start with something smaller - like a service to rival PayPal - and then graduate to offer additional banking services.

PayPal needs some good competition. Best of luck.

[wsp9]

I had the same questions and well the people I know opened a bank in Virginia roughly ten years ago. They sold out and made a huge bundle. From my understanding, it's all about marketing right after you get investors. We have significant investors to start things up and online banking laws are murky. We'll have lawyers on retainer to clear things. I'm doing it. Obviously they want me for marketing and to push the damn thing but this is one of those things you'll feel bad about for passing up - like buying that new porsche! Just Do It!

[tophat]

If you think you can pull in the resources to make the deal, then definitely go ahead.