The costs are far higher than people realize to start a regulated finance business. While the author mentions making money from the "get-go", one cannot do that in the banking industry.
First off, you need a very large capital deposit to start a new bank (millions), depending upon charter type and domicile. That money is necessary just to meet the absolute and relative (eg Risk-Based Capital) capital ratios. You don't get to spend it.
Second, plan on spending $100,000 or more just on the application process. Oh, and plan on the application review taking at least 6 months.
Third, you have to invest in the appropriate infrastructure (software, systems, office, etc) before you even open for business.
Fourth, you have to market/advertise to attract deposits.
All of these items (and probably more) most occur PRIOR TO the opportunity to make any revenue. And even if you are successful on the revenue side, banking is a game of narrow margins.
First off, you need a very large capital deposit to start a new bank (millions), depending upon charter type and domicile. That money is necessary just to meet the absolute and relative (eg Risk-Based Capital) capital ratios. You don't get to spend it.
Second, plan on spending $100,000 or more just on the application process. Oh, and plan on the application review taking at least 6 months.
Third, you have to invest in the appropriate infrastructure (software, systems, office, etc) before you even open for business.
Fourth, you have to market/advertise to attract deposits.
All of these items (and probably more) most occur PRIOR TO the opportunity to make any revenue. And even if you are successful on the revenue side, banking is a game of narrow margins.