STARBUCKS is a bank!
Yes, it's not a joke. Let me explain how.
You deposit money in your starbucks account on the app & when you use that money to buy coffee, you get rewarded.
Currently, there's a total of $1.5Bn lying in Starbucks accounts all over the world. And it is not sitting idle, Starbucks uses it for it's investing ventures.
So, whenever you put money in it's app, you're lending it to Starbucks at a 0% interest. And if you think $1.5Bn is not a huge amount, more than 85% of banks in USA have less than $1Bn in assets.
In 2008, Starbucks was going through a really rough patch, so, the Board decided to re-appoint HOWARD SCHULTZ as it's CEO.
And since the money can only be withdrawn for coffee & not cash, it allows Starbucks to bypass all the financial regulations binding on other banks.
What do you think about this stroke of genius by Howard Schultz?
#MacroEconomy