StarBucks is esstentially a Bank
Even though I don't support this coffee chain (there are many better local options that could use our support), here's why Starbucks is essentially operating as a bank:
1. They hold $1.77 billion in customer deposits through their rewards program - more than some actual banks!
2. These deposits are interest-free loans from customers.
3. They profit from unused gift card balances (about 10% annually).
4. Unlike banks, customers can only "withdraw" coffee, guaranteeing revenue.
5. In 2016, a banking executive called Starbucks an "unregulated bank."
1. They hold $1.77 billion in customer deposits through their rewards program - more than some actual banks!
2. These deposits are interest-free loans from customers.
3. They profit from unused gift card balances (about 10% annually).
4. Unlike banks, customers can only "withdraw" coffee, guaranteeing revenue.
5. In 2016, a banking executive called Starbucks an "unregulated bank."
![StarBucks is esstentially a Bank](https://sgsnsimg.moomoo.com/sns_client_feed/102728403/20240825/9a31a194a403fe40aab690fb03c86103.jpeg/big?area=101&is_public=true)
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