Zelle, which debuted in 2017, distinguishes apart in several ways. It is owned and run by Early Warning Services, LLC, a company that is co-owned by seven major banks and is not publicly listed. The platform benefits banks in ways other than producing a separate income stream.On its own, Zelle is not a revenue-generating company, said Mike Cashman, a partner at Bain & Co. You should think of this as a bit of a compromise, but also as an engagement tool rather than a revenue-generating machine.
Source: Tap LabIn a few areas, Zelle, which debuted in 2017, separates itself from the competition. It is owned and run by Early Warning Services, LLC, which is jointly owned by seven of the major banks and is not listed on a stock exchange. Beyond producing a separate revenue stream, the platform benefits the banks.
According to Mike Cashman, a partner at Bain & Co., Zelle is not actually a business that generates income on its own. Instead of viewing this as a machine that generates income, you should actually think of this as a little bit of an accommodation
For banks, trying to compete in that market is a no-brainer, according to Insider Intelligence senior analyst Jaime Toplin. Customers often use their mobile banking applications, thus no one wants to give third-party competitors the chance to take advantage of this market.
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