Odd Lots Why US Banks Are Trying to Turn Themselves Into Super Apps
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Jul 14, 2025 
Rohit Chopra, former director of the Consumer Financial Protection Bureau, shares his insights on the evolution of US banks into 'super apps' that integrate various financial services. He discusses the dramatic collapse of Silicon Valley Bank and its regulatory implications, highlighting the intersection of traditional banking and rapid technological change. The conversation also covers the rise of 'Buy Now, Pay Later' financing, the challenges posed by stablecoins, and the regulatory landscape banks must navigate to ensure consumer protection and stability.
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CFPB's Vital Regulatory Role
- The Consumer Financial Protection Bureau (CFPB) is crucial for enforcing consumer financial laws and overseeing large banks and non-bank lenders.
- Its current weakened state leaves a major regulatory gap that can't be easily filled by other agencies.
SVB Collapse Triggered by Run
- The Silicon Valley Bank collapse was triggered by a bank run focused on uninsured deposits.
- The interconnectedness with crypto firms and a sudden loss of confidence accelerated the run rapidly.
Expanded Deposit Insurance Impact
- Regulators expanded deposit insurance to cover all SVB customers despite typical limits to prevent systemic risk.
- This rare decision calmed markets but carries lasting implications for moral hazard and banking norms.