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After the brokerage commission wars, interest rates may be the next finance battleground

October 22, 2019


After shaking up trading commissions, fintech companies are looking at a new Wall Street area to disrupt: interest rates.

A wave of fintech companies are now offering a 2% or higher rate, which is more than 20 times the national average. In order to compete, analysts say some banks may have to raise their own rates to attract new customers.

“We saw it with the robo-advising and on the brokerage side,” said CB Insights fintech analyst Lindsay Davis. “The idea of banks offering .1% interest rate on the high end isn’t going to be viable.”

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