The Shift in the Banking Landscape

The podcast episode discusses how the banking industry has changed and the challenges it faces. Traditional banks have focused on gathering low-cost deposits through physical branches and making loans to various businesses. However, the speaker argues that these practices are outdated and that credit-focused banks are now running the industry. Live Oak Bank, a digital bank that specializes in small businesses and niche industries, is mentioned as an example of a bank adapting to the changing landscape. They focus on specific industries, hire domain experts as advisors, and use technology to provide a seamless banking experience.