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Founding a bank

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Quintillioner

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Hey guys I'm just 16 and thinking about to create a bank in the future maybe when I turn 24 but I need a bit more information about founding a bank so guys u are asked who can give me tips or knowledge to realize one of my dreams
 

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Kid

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I don't believe OP, but this is quite simple, you have enough cash - numbers might have changed but its somewhere between 10million and probably 50m.

You also need few people that were never sentenced for a crime (you probably can't create bank as one person -but i'm not 100% sure for every country).

And that's it.
 
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Bobby_italy

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I don't believe OP, but this is quite simple, you have enough cash - numbers might have changed but its somewhere between 10million and probably 50m.

You also need few people that were never sentenced for a crime (you probably can't create bank as one person -but i'm not 100% sure for every country).

And that's it.
Oh that’s it?
Damn I thought it was complicated, good luck with your first business Quint.
 

BellaPippin

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No, you need a bank license from the Feds to have the "bank account account" with them and there's a limited number of licenses that are given, because also they are the ones that give you your routing number. There's actually a ton of requirements to make a bank, that's the only one I remember out of the top of my head though.

Sauce: Was teller/banker for a couple years
 

MrTrash757

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No, you need a bank license from the Feds to have the "bank account account" with them and there's a limited number of licenses that are given, because also they are the ones that give you your routing number. There's actually a ton of requirements to make a bank, that's the only one I remember out of the top of my head though.

Sauce: Was teller/banker for a couple years
Can't you also partner with a licensed bank and then basically resell their services under another brand? Similar to Azlo and Simple (both are under BBVA, and I use them), or Chime (Bancorp). I feel like this came out some Obama-era regulation changes, similar to the changes with accredited investor status.

I could be wrong, one of the many reasons I am in PE rather than being a bank ;)

Either way, its a massive process to get a bank going.
 

BellaPippin

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Can't you also partner with a licensed bank and then basically resell their services under another brand? Similar to Azlo and Simple (both are under BBVA, and I use them), or Chime (Bancorp). I feel like this came out some Obama-era regulation changes, similar to the changes with accredited investor status.

I could be wrong, one of the many reasons I am in PE rather than being a bank ;)

Either way, its a massive process to get a bank going.

That I don't know, it could be an option. I think you also need a hefty initial capital (there's a minimum requirement), and also something related to the FDIC insurance
 

100k

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Highly ambitious.
I like that.
The Rothschilds Family did the same back in 15th-16th century.

No, what they started was a family bank.
That's not the same.

That has to do with buying whole life insurance policy for you and your family members, then sitting everyone down annually and exchanging business ideas & tips and using the life insurance policies to lend to the family members (IF they have viable business ideas). And they have to repay the loans back with interest, or if they fail then its not a big deal because the policy would cover the cost - once the person dies in the future.
 

MrTrash757

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That I don't know, it could be an option. I think you also need a hefty initial capital (there's a minimum requirement), and also something related to the FDIC insurance
Similar to an ISDA if I decide to open a derivatives division ;)
 

SteveO

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I watched someone start a bank and work his a$$ off for years. Then, I watched him get booted. Don't know exactly what happened but it had something to do with government oversight.
 

Nils Löwe

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When you don't do it in a western coutry, it might be easier. The guys in 'Rising High' (Netflix) show a working way.
 

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sparechange

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If you want to rob a bank, get a gun.

If you want to rob the world, open a bank. :rofl: Or become a politician ..
 

Johnny boy

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You should start a business in something you have a competitive advantage in. Is your dad a car lot owner? Do you have a friend who's willing to lend you something of value that could be used in a business? Are you really, really good at designing things?

You should start a bank if you have some sort of competitive advantage that will help you overcome obstacles easier than another person when trying to start a bank. Say, if you were close with someone way high up in the banking industry who could be useful in getting started, or had 100 million dollars.

When people become successful, losers will point at them and say "yeah, well of course he was successful, he had access to x, y and z. Other people don't have those things. He was lucky"

Everyone has some competitive advantage. Whether it's a friend they know, a skill or talent they have, or access to something that other people don't have, many people have something they can leverage along with their hard work and perseverance to create a successful business.

Take a look at who you know, what you know, what you're good at, and what access you have and a business opportunity will likely reveal itself. Don't try to fix your weaknesses, focus on your strengths and leverage them. This is what people mean when they say to find your purpose. It will be effortless.

With that said, try to start a bank anyways, just don't use it as an excuse to wait around saying you don't have what you need to do it yet.

Instead of starting a "bank", get into the fin-tech industry. Start something within the financial tech industry and eventually add banking into the mix when your fin-tech company has the assets, reputation and experience to become a bank in the traditional and official sense of the word.

Many people would say to not be ridiculous and wouldn't take you seriously. But I think about some of my personal goals and they are much more ridiculous and I am quite serious about each of them. I take everyone seriously, knowing that 99% of everyone's talk is complete bullshit. But some people dream big and actually follow through with it. I give everyone the benefit of the doubt. I hope you really do start a bank.
 

Mutant

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Ing

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I have a school friend, who studied the bank things 30 years ago. He has a Professorship on Oxford And os one of the cleverest people I know.
He said, that opening a bank is a money printing machine. You lend people imaginary money and get back real truth cash. So interests ar not really the theme.

Knowing that, he didn’t start a bank, because he didn’t have the 8 m he needed and said, hes s not clever enough.


So, if you can open a bank, just DO it!
 

Martzee

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No, you need a bank license from the Feds to have the "bank account account" with them and there's a limited number of licenses that are given, because also they are the ones that give you your routing number. There's actually a ton of requirements to make a bank, that's the only one I remember out of the top of my head though.

Sauce: Was teller/banker for a couple years
He lives in Stuttgart, Germany, so it will be EU regulations... but hey, he is 16, if he keeps saving diligently until he is 24 he may save the required 10M or whatever the number is...
 

Quintillioner

PARKED
Aug 12, 2020
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Stuttgart
You should start a business in something you have a competitive advantage in. Is your dad a car lot owner? Do you have a friend who's willing to lend you something of value that could be used in a business? Are you really, really good at designing things?

You should start a bank if you have some sort of competitive advantage that will help you overcome obstacles easier than another person when trying to start a bank. Say, if you were close with someone way high up in the banking industry who could be useful in getting started, or had 100 million dollars.

When people become successful, losers will point at them and say "yeah, well of course he was successful, he had access to x, y and z. Other people don't have those things. He was lucky"

Everyone has some competitive advantage. Whether it's a friend they know, a skill or talent they have, or access to something that other people don't have, many people have something they can leverage along with their hard work and perseverance to create a successful business.

Take a look at who you know, what you know, what you're good at, and what access you have and a business opportunity will likely reveal itself. Don't try to fix your weaknesses, focus on your strengths and leverage them. This is what people mean when they say to find your purpose. It will be effortless.

With that said, try to start a bank anyways, just don't use it as an excuse to wait around saying you don't have what you need to do it yet.

Instead of starting a "bank", get into the fin-tech industry. Start something within the financial tech industry and eventually add banking into the mix when your fin-tech company has the assets, reputation and experience to become a bank in the traditional and official sense of the word.

Many people would say to not be ridiculous and wouldn't take you seriously. But I think about some of my personal goals and they are much more ridiculous and I am quite serious about each of them. I take everyone seriously, knowing that 99% of everyone's talk is complete bullshit. But some people dream big and actually follow through with it. I give everyone the benefit of the doubt. I hope you really do start a bank.
Well thank You Johnny Boy for this knowledge I will give my best and start a bank I even think now to start a car company after I finished my school but let's see how the future will change in 2 years
 

thechosen1

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The thing about opening a bank is that you need a lot of money, but it doesn’t have to be YOUR money. It’s exactly like any business in the finance industry: you raise it.

All of these types of finance businesses aren’t really about finance, they’re mostly about sales.

The product you are selling isn’t a product, it’s the opportunity to invest in a project, fund, or in this case, in a new bank.

Side note: there was a new bank founded in my hometown and I was curious to see the President and CEO was our local state representative. He ended up in some kind of scandal and is losing his political seat. Looks he now he won’t be running the bank...

So connections are super important. There were some very well recognized names on the list of investors/partners when I googled the various corporation names. One was a very famous restaurant owner/developer.

You don’t need to be rich - you just need to know people and be a phenomenal salesman.
 
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