Everyone in the comments here seems pretty pessimistic about what this is implying. I got the opposite impression--I think this report is actually very progressive, and that we should commend the economists at BBVA bank for identifying a trend so far in advance.
Most significantly, there is this quote:
>"For banks, crowdfunding poses a challenge ... However, banks should be prepared for this trend and make it work to their advantage."
Making crowdsourcing 'work to their advantage' is very different than making crowdsourcing illegal. It would be much more profitable for them to start up their own crowdsourcing platforms. That way, people deposit money into the banks interest earning accounts, AND they get a cut. Instead of 7% interest with a non-trivial chance of default (which, if you account for ~3% inflation, means their true benefit is only 4%), they get a clean 5% fee right off the top. With no risk. At all. Its free money.
This is a no-brainer for me. Banks are built to help people get the money they need to do what they would like to do. They would only stand to gain money by doing this on their own. Shutting down the whole system would be stupid, and I think the economists at BBVA would agree.
Most significantly, there is this quote:
>"For banks, crowdfunding poses a challenge ... However, banks should be prepared for this trend and make it work to their advantage."
Making crowdsourcing 'work to their advantage' is very different than making crowdsourcing illegal. It would be much more profitable for them to start up their own crowdsourcing platforms. That way, people deposit money into the banks interest earning accounts, AND they get a cut. Instead of 7% interest with a non-trivial chance of default (which, if you account for ~3% inflation, means their true benefit is only 4%), they get a clean 5% fee right off the top. With no risk. At all. Its free money.
This is a no-brainer for me. Banks are built to help people get the money they need to do what they would like to do. They would only stand to gain money by doing this on their own. Shutting down the whole system would be stupid, and I think the economists at BBVA would agree.