Most major corporations — from airlines to social media platforms — now aspire to become unregulated banks. Bankification today accounts for
This is a long read, but worth it. Some takeaways:
-Don’t use “buy now pay later.” The fine print isn’t what it seems.
-The fine print on medical financing, store credit cards, and contactless payment is also not what it seems.
-Payday loans are still predatory, even when offered by your employer
-Rewards programs are an income stream for the companies that run them. The points systems are manipulated so that the house always wins. They depend on people leaving money in rewards accounts and not in interest-bearing traditional bank accounts.
-Electronic payment apps like VenMo are not banks. You don’t earn interest. Your money is not protected.
-Your financial information is not private if your money is not kept in a regulated bank.
-None of this is regulated by the FDIC. Your money is not protected if it is held by a non-bank doing banking business. Our economy is not protected from the collapse of financial institutions that are not banks.
-The Biden administration was making progress in increasing accountability for non-banks operating as predatory financial services providers. The current administration is reversing those protections to favor corporations.
Oh boy.
A third of younger Americans hold their savings on nonbank tech platforms like Venmo
PEOPLE! DO NOT LEAVE YOUR MONEY IN VENMO OR APPLE PAY OR ANY OF THIS SHIT. FOR THE LOVE OF GOD GO FIND A REAL BANK OR A CREDIT UNION.
If Venmo were to close tomorrow all your money would vanish. There's no insurance or guarantee on any of these things. I know banks aren't great but legit banks will have the "FDIC insured" logo on their doors and websites, which means if my bank goes under tomorrow I still get my money back. Also I guarantee you there is a credit union somewhere in your town, go find it.
You can leave some money in Venmo or Apple pay or whatever, but NOT ALL OF IT for the love of God.
FYI this is what the logo looks like and Apple Cash is FDIC insured.
No, it's misleading. Go to Green Dot's T&Cs, search for "FDIC," and you'll come across this:
your funds are insured up to $250,000 by the FDIC in the event Green Dot Bank fails
In the event Green Dot Bank fails. Meaning the only time your money is protected is if Green Dot goes under. Not if Apple goes under (unlikely, granted). Or if Apple changes its terms (entirely possible). Or if you got scammed. Or if Apple freezes your account because they think you're the one scamming. Or any of the other countless mishaps your money could suffer. Green Dot is insured, but Apple Cash is not.
This is the disclaimer (highlighted) you see before you set up Apple Cash:
I really need my followers, especially younger ones, to read this.
And DO NOT get store credit cards, they are money sucks and difficult to cancel.
