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Comment by amerkhalid

2 years ago

We don’t hear about traditional banks freezing money as much online banks. Maybe people who use traditional banks are mostly running traditional businesses with well understood risk profiles.

Also traditional banks make you go through a lot of paperwork upfront, so they probably don’t have as much as risk online banks which approve everyone without much paperwork. So that’s why online banks aggressively block anyone who is high risk and start doing big enough volume.