Fintech Takes Inside Net Interest
11 snips
Jan 28, 2026 
Marc Rubinstein, author of Net Interest and fintech commentator, unpacks banking structure, the quirks of the US 30-year mortgage, and why thousands of community banks persist. He debates agentic commerce hype versus real use and explains why stablecoins are migrating to permissioned, institution-backed rails shaped by big players like Stripe.
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Why The U.S. Keeps So Many Banks
- Path dependence explains why the U.S. retains thousands of community banks instead of consolidating like other countries.
- Deposit insurance and political lobbying preserved the fragmented banking structure despite tradeoffs in regulatory supervision.
Community Banks Are A Political Force
- Community banks have woven themselves into U.S. political culture and policy as an almost sacred institution.
- That political influence makes regulators wary of reforms that would consolidate the sector.
1994 Marked Banking Consolidation's Inflection
- Interstate banking rules from 1994 triggered sustained consolidation from a 15,000-bank peak.
- Scale advantages on tech, compliance, and distribution favor larger banks and push smaller ones out.
