in the uk, starling, monzo, raisin in germany, n26, they don t have the infrastructure and legacy costs that incumbent banks do. i m just wondering how do you see this developing over let s just say the next couple of years? is this current situation here to stay? well, one of the things. i think there probably will be a bit. i know the eu is talking a little bit about regulation and the uk is. the us, maybe a bit less. some new regulation might come in to require banks to offer higher rates of savings to customers. but also, at the end of the day, there s a possibility that central banks will lower some of these interest rates. we are getting to a point with the cost of living crisis, and with inflation, and i hate to put it this way, but you re going to get to the point where sections of the population that aren t normally in financially vulnerable positions are going to find themselves in those positions. when the middle class starts defaulting on their mortgages,
and makes loans. but what banks do is hold money. and move it around. like, that is. that is the basic bank business. so, with all this cash in the system, there is a lot more cash than they have in their reserves, that s part of their business. not every investment bank, but a lot of investment banks, also profited from the stock market volatility that we ve been going through over the past three years because of covid. there are some good deals out there, aren t there? particularly from newer banks, who need to attract the cash. yeah, i mean, in the uk, the rates of 3% or 4% but newer banks are offering better rates, like, around 3% or 4% that they are offering better products to attract new customers. also newer banks, like in the uk, starling, monzo, raisin in germany, they don t have the infrastructure and legacy
the uk, starling, monzo, raisin, and a german bank they don t have the infrastructure and legacy costs that incumbent banks do. i m just wondering, how do you see this developing over let s just say the next couple of years? is this current situation here to stay? well, one of the things. i think that there probably will be a bit. i know the eu is talking a little bit about regulation and the uk is. the us, maybe a bit less. some new regulation might come in to require banks to offer higher rates of savings to customers. but also, at the end of the day, there s a possibility that central banks will lower some of these interest rates. we are getting to a point with the cost of living crisis and with inflation, and i hate to put it this way, but you re going to get to the point where sections of the population that aren t normally in financially vulnerable positions are going to find themselves in those positions. when the middle class starts defaulting on their mortgages, that s when
the rates of 3% or 4% but newer banks are offering better rates, like, around 3% or 4% that they are offering better products to attract new customers. also newer banks, like in the uk, starling, monzo, raisin in german bank, they don t have the infrastructure and legacy costs that incumbent banks do. i m just wondering how do you see this developing over let s just say the next couple of years? is this current situation here to stay? well, one of the things. i think there probably will be a bit. i know the eu is talking a little bit about a regulation and the uk is. the us maybe a bit less. some new regulation might come in to require banks to offer higher rates of savings to customers. but also, at the end of the day, there s a possibility that central banks will lower some