{"id":355309,"date":"2023-08-02T14:15:00","date_gmt":"2023-08-02T06:15:00","guid":{"rendered":"https:\/\/www.ziet.co\/v2024\/?p=355309"},"modified":"2024-09-26T14:21:40","modified_gmt":"2024-09-26T06:21:40","slug":"why-is-starbucks-a-bank","status":"publish","type":"post","link":"https:\/\/www.ziet.co\/v2024\/newsletter\/why-is-starbucks-a-bank\/","title":{"rendered":"#8 Why is Starbucks a bank?"},"content":{"rendered":"\n

<\/path><\/svg><\/span><\/span>Estimated reading time: <\/span>4<\/span> minutes<\/span><\/p>\n\n\n

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Timely updates to supercharge your wealth-building journey!<\/p>\n\n\n\n

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TABLE OF CONTENTS<\/strong><\/h3>\n\n\n\n
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  1. Why is Starbucks a bank?<\/strong><\/a><\/li>\n\n\n\n
  2. Word of the Week: Option<\/a><\/strong><\/li>\n\n\n\n
  3. Key economic dates: ISM Non-Manufacturing PMI, Nonfarm Payrolls, Unemployment Rate<\/a><\/strong><\/li>\n\n\n\n
  4. What I\u2019ve been reading<\/a><\/strong><\/li>\n<\/ol>\n<\/div>\n\n\n\n
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    Why is Starbucks a bank?<\/strong><\/h3>\n\n\n\n

    Hello coffee lover, is Starbucks one of your go-to coffee spot? We are about to reveal their secret today – how they brew coffee, AND MONEY.<\/p>\n\n\n\n

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    The Magic of Starbucks Cards and App \ud83d\udcb3\ud83d\udcf1<\/strong><\/h5>\n\n\n\n

    When we load money into a Starbucks card or mobile app, we are actually lending Starbucks our money! By year 2022, Starbucks held a whopping $2.8 billion (approximately RM 11.8 billion) from customers’ pre-loaded cards<\/strong> and app balances.<\/p>\n\n\n\n

    Meaning? They have big money pumping in consistently before people even spend at their stores!<\/p>\n\n\n\n

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    1. Zero-Interest Loans 0\ufe0f\u20e3<\/strong><\/h4>\n\n\n\n

    Do you know that, whenever we top up money into the cards, we are indirectly giving out a zero-interest loan to them!<\/p>\n\n\n\n

    Unlike banks, Starbucks is not bounded by the same regulations<\/strong>, so they can freely use our cash to expand operations, open new stores, or for other needs.<\/p>\n\n\n\n

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    2. Unspent Balances<\/strong><\/h4>\n\n\n\n

    Here is where it goes better than it looks – about 10% of the money loaded onto Starbucks cards and apps never gets spent<\/strong>. This added up to $196 M (around RM823 M) of unused balances in 2022, effectively giving Starbucks free money.<\/p>\n\n\n\n

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    3. No Cash Reserves<\/strong><\/h4>\n\n\n\n

    Unlike regular banks that need to hold some cash reserves against deposits, Starbucks has no such requirement. All you can withdraw are their food and drinks<\/strong>, and that is usually worth so much lesser compared to the cash value you have in the app itself!<\/p>\n\n\n\n

    So here goes the story of how Starbucks operates like a bank. You may also wonder, out of so many coffee shops, why Starbucks is so successful? Here is my YouTube video explaining about the story of Starbucks, feel free to check it out!<\/p>\n\n\n\n

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