Vlad Tenev

They make it so that you really have to move your money and optimize for it.

It doesn't happen automatically.

And in checking, you're not going to get any yield.

Typically, it's zero.

Savings at most places, you get very little also.

So the sort of incentive for the bank is for you to keep all of your money in these low yield generating accounts so that they can make more money off of you.

And if you look at the big banks, I mean, trillions of assets that they're basically taking all the margin on.

So we asked ourselves, can we take advantage of this to make a great yield product for customers?

And can we make it so that you get the lion's share of the margin, which right now is between 3.5% and 4.25%.

And we make a little bit margin, but

call it like one-tenth right in that ballpark.

So still fair.

And then can we just create a stickier product?

Another factor of this that I didn't really like as a business person is that your revenues are highly dependent on what the interest rate is by the Fed.

If interest rates are high, you're making a lot of money.

If interest rates are low, you're not.

So you're kind of

not controlling your destiny.

But if you commit to operating at a certain spread or margin, then you just tick up the rate that you give your customers up or down, depending on what the Fed does, and that's much more sustainable.

So the second big idea was, can we take this yield thing