Starting a Bank

[djs13]

I stumbled upon this blog article by the guy who made Wordpress. I did a few searches but I couldn't find any information on this forum about starting a bank. Every state has its own regulations and it would certainly be a difficult start-up, but what do you think about the possibilities of starting a bank?

 

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[WildFlower]

Well... hmmmm if you start a bank.. I want to be your friend! LOL You could buy government backed loans! I really want to be your friend! LOL

 

[God]

Start-up cost for setting up a bank is between 5-20 mil $. In some third world countries the entrance fee is as low as 2 mil$.

 

[fanocks2003]

Startup costs differ very much depending on what you want to accomplish with the bank.

Startup costs are high though. Very much of the startup cost stems from the license itself which is expensive. It takes a while to recieve that license as well.

In general: finance and banking business is both expensive and takes a long time to put together. A lot of regulations involved. Import businesses are faster and easier to put together. Not nearly as many regulations.

If you start a bank, then PM me as well. I might be interested in buying a piece of the first private placement. Subject to a strong board of directors.

 

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[WildFlower]

Maybe talk to anyone on the board of a small bank.. and by small I mean, they have one or two branches.

 

[djs13]

Maybe talk to anyone on the board of a small bank.. and by small I mean, they have one or two branches.

That's what I'm thinking. My hypothetical idea is a bank like ING Direct, which would be 100% online. Would that still cost $2 million in licenses? I'm surprised this idea hasn't been discussed yet on the Fastlane forums. I like the idea about a "non-corporate," technology friendly online bank. A bank that doesn't issue bonuses to its executives is rebellious to its industry, but its rebellious in a Richard Branson kind of way which would attract customers.

EDIT: I also just found this tutorial. It may over simplify the process, but its interesting.

 

[GlobalWealth]

I have some friends opening a bank in NC and they had to capitalize the bank with $12m (not 100% sure on the exact figure but is in the ballpark). there is a huge amount of regulation involved in this and they have been in process of opening the bank for going on 2 years now. I am sure there is significant benefit to being a bank owner, but it is certainly not for the faint of heart. If you want to be connected to my friend, I am sure he would be happy to chat with you. Feel free to send me a message. my email is bobby@globalwealthprotection.com

 

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