Personal Finance

OUR NEW BANK - Stein People's Bank

  • Last Updated:
  • Apr 9th, 2010 3:49 pm
[OP]
Sr. Member
Jan 16, 2010
629 posts
21 upvotes

OUR NEW BANK - Stein People's Bank

Lately, I have been thinking about opening my own bank, and yes, it's alot easier said than done. But I can't help imagine having my own bank, probably an eBank, it would be a revolutionary bank, one that is straight forward, that is cut-clean, that makes the client feel like they are part of a family, works there money efficient and gives good return, a no-hassle bank, where we don't waste money on luxurious corporate travel, rather make money for our investors and your clients.

This is just an idea, I have a lot more to say about this, I've jotted a good 100 points on my notepad. I want to take it further, I don't know where I'll get, but I'm going to give it a shot. If it is simply to hard to do it in Canada, maybe I will try it in the States. Maybe I will fail at doing this or maybe never start it. I've been looking at the regulations, etc., and it is a lot of work, but I know a couple of people that can help me do this.

I'm thinking of maybe creating a movement, maybe even collect donations to start this bank, I don't know, I have a lot of crazy ideas.

I've researched all day, I'm going to spend a lot of time researching all of next week.

If you know anything that can help me, any opinions, any comments, any thing you want to see in a new bank tell me. Also be negative, tell me the challenges, I want to hear it.

Tell me if you would switch to Stein People's Bank. I want to create a movement, maybe replace the gap that Citizens Bank of Canada has left. We will see what happens.
24 replies
Deal Addict
User avatar
Dec 16, 2007
3906 posts
1020 upvotes
Toronto
lol good luck getting donations

and easier said than done applying such revolutionary banking ideas from paper to reality

i for one would not open an account at a new unestablished bank
Deal Expert
May 17, 2008
15134 posts
158 upvotes
jewville wrote: Lately, I have been thinking about opening my own bank, and yes, it's alot easier said than done. But I can't help imagine having my own bank, probably an eBank, it would be a revolutionary bank, one that is straight forward, that is cut-clean, that makes the client feel like they are part of a family, works there money efficient and gives good return, a no-hassle bank, where we don't waste money on luxurious corporate travel, rather make money for our investors and your clients.
From other threads, it sounds like your poor experiences with other banks is mostly due to the fact that you don't pay your bills.

Is your bank going to be happy to give away it's money to people who don't pay it back, and not try to recover that money?

I say this in a perfectly factual way, and not emotional or personal, but customers like you are one of the largest costs in the banking industry. Ones who take money, don't pay it back for months/years(so the bank looses the ability to make money off that money), and then force the banks to accept a tiny percentage of the actual amount they owe since they may get nothing if you declare bankruptcy.

If you are not going to charge those types of people more, try to keep them away from your bank, and do everything in your power to recover money from them, then it's the investors and responsible clients will be the ones who suffer.
Deal Addict
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Sep 26, 2007
3960 posts
146 upvotes
SC
who the hell collects donations to start a bank...
Sr. Member
User avatar
Dec 22, 2006
524 posts
207 upvotes
Toronto
jewville wrote: Lately, I have been thinking about opening my own bank, and yes, it's alot easier said than done. But I can't help imagine having my own bank, probably an eBank, it would be a revolutionary bank, one that is straight forward, that is cut-clean, that makes the client feel like they are part of a family, works there money efficient and gives good return, a no-hassle bank, where we don't waste money on luxurious corporate travel, rather make money for our investors and your clients.

This is just an idea, I have a lot more to say about this, I've jotted a good 100 points on my notepad. I want to take it further, I don't know where I'll get, but I'm going to give it a shot. If it is simply to hard to do it in Canada, maybe I will try it in the States. Maybe I will fail at doing this or maybe never start it. I've been looking at the regulations, etc., and it is a lot of work, but I know a couple of people that can help me do this.

I'm thinking of maybe creating a movement, maybe even collect donations to start this bank, I don't know, I have a lot of crazy ideas.

I've researched all day, I'm going to spend a lot of time researching all of next week.

If you know anything that can help me, any opinions, any comments, any thing you want to see in a new bank tell me. Also be negative, tell me the challenges, I want to hear it.

Tell me if you would switch to Stein People's Bank. I want to create a movement, maybe replace the gap that Citizens Bank of Canada has left. We will see what happens.
LOL...Thanks for another EPIC thread :)
Deal Fanatic
User avatar
Apr 16, 2006
6114 posts
560 upvotes
First of all, they don't let just any wacko open up a bank in Canada.

If you're going to classify it as a "bank", it will be governed by the federal Bank Act. I would suggest that you first start looking through that Act before getting too ahead of yourself. The act will tell you what your bank can and cannot do (well, for the most part...case law is another story :) )

Secondly, you'll need a lot of capital in order to start your own bank. I can't recall the magic number needed for the life of me...so I'll just pull an arbitrary number out of thin air - 10 Million Dollars. You need at least 10 million dollars worth of working capital in order to be allowed to open up a bank in Canada.

Aside from the big 5 banks, there are countless other ones like National Bank, HSBC, PCF, People's Trust, Ally, etc. You're going to have to do a hell of a job in order to convince enough people to jump ship from these institutions and come to yours.

If you're serious about this, you've got a lot of work ahead of you.
Deal Addict
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Feb 17, 2005
4725 posts
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Markham
I don't know what's funnier the OP or the ppl who think he's serious
Sr. Member
User avatar
Aug 31, 2008
546 posts
265 upvotes
Barrie
jewville wrote: Lately, I have been thinking about opening my own bank, and yes, it's alot easier said than done. But I can't help imagine having my own bank, probably an eBank, it would be a revolutionary bank, one that is straight forward, that is cut-clean, that makes the client feel like they are part of a family, works there money efficient and gives good return, a no-hassle bank, where we don't waste money on luxurious corporate travel, rather make money for our investors and your clients.

This is just an idea, I have a lot more to say about this,
I've jotted a good 100 points on my notepad. I want to take it further, I don't know where I'll get, but I'm going to give it a shot. If it is simply to hard to do it in Canada, maybe I will try it in the States. Maybe I will fail at doing this or maybe never start it. I've been looking at the regulations, etc., and it is a lot of work, but I know a couple of people that can help me do this.

I'm thinking of maybe creating a movement, maybe even collect donations to start this bank, I don't know, I have a lot of crazy ideas.

I've researched all day, I'm going to spend a lot of time researching all of next week.

If you know anything that can help me, any opinions, any comments, any thing you want to see in a new bank tell me. Also be negative, tell me the challenges, I want to hear it.

Tell me if you would switch to Stein People's Bank. I want to create a movement, maybe replace the gap that Citizens Bank of Canada has left. We will see what happens.

Too bad you didn't listen when your mommy said "just say no." You been smokin' too much whacky tobacky!
Sr. Member
Jan 2, 2003
742 posts
6 upvotes
evoviii wrote: I don't know what's funnier the OP or the ppl who think he's serious
Either way it's a hilarious read :D
Newbie
Jan 27, 2009
19 posts
toronto
I have a great idea for you. I got an interesting email from a serious sounding gentleman in Nigeria who says he has access to millions of dollars, and he's willing to share it with someone who will give him their bank account number and help him get the money out of the country! Tell you what...if you promise to give me a small percentage up front, and give me your bank account info, I'll put him in touch with you and you can set up the transfer. You'd be well on your way to riches in the banking industry..I hear Bernie Madoff may be looking for a new job soon..maybe he can be a silent partner!
Best of luck!
Member
Aug 1, 2008
284 posts
50 upvotes
Toronto
jewville wrote: Lately, I have been thinking about opening my own bank, and yes, it's alot easier said than done. But I can't help imagine having my own bank, probably an eBank, it would be a revolutionary bank, one that is straight forward, that is cut-clean, that makes the client feel like they are part of a family, works there money efficient and gives good return, a no-hassle bank, where we don't waste money on luxurious corporate travel, rather make money for our investors and your clients.
If you are serious about starting-up a new deposit taking financial institution, I'd look at launching a credit union.

Citizens Bank was actually owned by a credit union (Vancity), and was a way to get around the current regulations that limit a credit union to operating in only one province.
jewville wrote: I'm thinking of maybe creating a movement, maybe even collect donations to start this bank, I don't know, I have a lot of crazy ideas.
In the credit union world, those "donations" are called "investment shares". They are paid interest and are ultimately redeemable.
jewville wrote: If you know anything that can help me, any opinions, any comments, any thing you want to see in a new bank tell me. Also be negative, tell me the challenges, I want to hear it.
I would start with the Financial Service Commmission of Ontario's worksheet (PDF) which provides an overview of how to launch a credit union (with a template for doing market research).

You can also contact:

DICO, the government agency which regulates, audits and insures the deposits of the credit unions in Ontario.

Central1 an industry group that represents credit unions in Ontario and BC and provides back-office support and payment processing (including access to the Exchange ATM network).

I'd also look at one of Ontario's newest credit unions: the Creative Arts Savings & Credit Union as an example of what can be done. It was founded a couple of years ago by an actors union for its members, who made good money in inconsistent contracts on film and theatre projects. Some of its members had problems dealing with the big banks, who prefer reliable employment income -- hence the need for a credit union that understands their needs.

If you want to go this route, you could start by joining a small credit union and running for a position on their board of directors. There you'll learn how to set corporate strategy and review the financial performance of the credit union.

What you'll find is that most credit unions are run efficiently, have some of the highest published interest rates, return most of their profits to their customers/members/shareholders (they're all the same) and make their members feel like they are "part of a family".
Octavius wrote: First of all, they don't let just any wacko open up a bank in Canada.
To the rest of the board: Ontario credit unions are very well regulated and quite conservatively run. Much of management's overhead is spent complying with directives and audits from various government agencies. Truly "wacko" ideas won't fly at any credit union, especially if they jeopardize the company's profitability or the members' assets.
Deal Addict
Oct 30, 2008
2120 posts
58 upvotes
Toronto
I'm quite speechless at the proposition but starting a bank or credit union is not easy. Canada is not like the US where you have 7,500 different banks. Even if you could come up with the capital you still need the right management team. If you have absolutely no banking or financial industry experience, what role will you serve in?

Islington is on the right track, if you're really up to it you can set up a credit union.
Deal Expert
May 17, 2008
15134 posts
158 upvotes
liorsyncro wrote: I'm quite speechless at the proposition but starting a bank or credit union is not easy. Canada is not like the US where you have 7,500 different banks. Even if you could come up with the capital you still need the right management team. If you have absolutely no banking or financial industry experience, what role will you serve in?

Islington is on the right track, if you're really up to it you can set up a credit union.
lol, even setting up a credit union is not easy. For someone with horrible credit, like the OP has, I can't see how it would be possible to get things set up in his name.
Sr. Member
Feb 1, 2010
871 posts
173 upvotes
What is the significance of Stein?

Were the contents of one significant in the brain storming of this project?

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