Hey Aaron, three questions:
- What does the second fun fact mean by “but that was before 2 rate increase”?
- Why did you use 80bps as the revenue in the bolded equation and then 90bps in the table?
- Does the Savings forecast account for attrition? I.e. is that why the balance is not increasing by $170 each month? (I’m on my phone so I can’t read your google sheet)
Agree with your recommendations though. Digit, as others have said on Twitter, is a tool to help people climb the financial services ladder. This fee structure seems hard to reconcile with that mission unless: a) their expense structure is dramatically more expensive than what you estimated, b) they have some other big challenges that are putting huge cost pressures on them or c) their average balances are just massive.