Would you trust your savings to a startup? Maybe if there was FDIC insurance. Would you expect the federal government to trust everyone's money to startups?
No way.
While banks may be horrible to their retail customers, the regulations that protect them exist for a reason. The current state of affairs is far, far better than having hundreds of thousands of banks which could fail and drop off the map with all of their customers' assets at any time.
FDIC insurance has changed that, but a prudent insurance company would not insure a startup bank, or if it did, it would need to collect so much for that risk that the startup bank couldn't offer anything competitive. The FDIC is almost certainly not going to do this.
No way.
While banks may be horrible to their retail customers, the regulations that protect them exist for a reason. The current state of affairs is far, far better than having hundreds of thousands of banks which could fail and drop off the map with all of their customers' assets at any time.
FDIC insurance has changed that, but a prudent insurance company would not insure a startup bank, or if it did, it would need to collect so much for that risk that the startup bank couldn't offer anything competitive. The FDIC is almost certainly not going to do this.
Simple is a UI on top of a traditional bank.