Is Starbucks technically a bank?
Is Starbucks technically a bank? What is the truth behind Starbucks? Why are people calling it a FinTech or a bank these days?
Starbucks is operating like a bank Starbucks today is essentially operating as a bank without the traditional regulations.
Moreover, not surprisingly its deposit volume ranks in the higher bracket of US banks. Starbucks has an estimated $1Bn+ in stored value whereas 85% of US banks have less than $1B in assets. The stored card value for Starbucks is in effect a bank deposit. The advantage Starbucks has is that stored value has relatively fewer regulations. In addition, the value put down as a liability and Starbucks can utilize the money for their business.
However, the stored value cannot be redeemed for cash. It is not insured and unlike banks. It does not offer interest on the stored money. Lastly, though the scope is limited to Starbucks locations the number of locations enables consumers easy access to their stored credit.
Starbucks provides some of the best coffee around. And that is America’s favorite drug. Caffeine, more so than any other substance, Americans love and need their coffee. What will Americans do without their Starbucks? It is a financial monopoly and one of the coolest FinTech’s around.