Welcome to Industry Focus, the podcast that dives into a different sector of the stock market every day.

It's Monday, April 2nd, and we're talking financial disruptors.

I'm your host Michael, I'm your host Michael, and I'm joined by Matt Frankel.

Now if you've been listening to industry focus

financials for a while you've heard our three

episodes breaking down the big American banks

and you know at least at a high level, how they make money, commercial, or to put it differently,

more traditional banks like Wells Fargo and U.S. Bank, make their money primarily by taking

in deposits and lending those deposits back out as higher interest loans, pocketing the

spread between the two. Investment banks like Goldman and Morgan Stanley make

their money in part by advising on mergers and acquisitions and in part on wealth

management fees,

Universal banks do a little bit of both.

Several of these banks also operate brokerages,

where they make money every time you make a stock trade,

or by arbitraging the bid ask spread, that is the difference between what you're willing to pay for a stock

and what someone else is asking for for it.

Most also operate credit cards with payment processors like Visa and Mastercard,

and of course they make money on credit card fees both from you and from the

merchant. And now each of the major ways banks seek to make money is being

disrupted and they are of course seeking to to make money is being disrupted.

And they are, of course, seeking to figure out how best to respond.

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