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Illustration: Sarah Grillo/Axios

American banks are minting money. In 2018, they made $237 billion in profits, bringing their average return on assets to an extremely healthy 1.35%. That's up from 0.97% in 2017. With banking so profitable, a lot of new players are looking to get in on the game, or to increase their market share.

The big picture: In a tech-obsessed world, a broad range of institutions have decided that the future of banking lies in apps. The logic is simple: Increasingly, Americans want to bank on their phones, rather than in expensive-to-maintain branches, so banks should give them what they want.

  • Goldman Sachs, which already has an online savings account called Marcus and a cash-management app called Clarity, is reportedly going to launch a new card designed for iPhones in particular. Expect something beautiful, designed by Apple.
  • Aspiration, an eco-friendly mobile-first bank, has relaunched its product with a slew of attractive features including cash back on debit card purchases, zero ATM fees worldwide, and 2% interest on deposits.
  • Varo offers a savings account paying as much as 2.8% to customers who use its checking product.
  • Other neobanks including Chime, Acorns, and Simple are also competing hard; even JPMorgan Chase has one, called Finn.
  • Banks, prepaid debit cards, and brokerages are all blurring into each other, offering much the same products. Look at SoFi Money, for example, or at the new Wealthfront savings product, which promises to support bill payment soon. Expect it to have a debit card, too.
Data: Marqeta survey of 1,200 U.S. adults conducted Jan. 16-18, 2019 with a margin of error of ±3 percent; Chart: Naema Ahmed / Axios

The state of play: Most mobile-first banks target millennial customers, on the grounds that they are less wedded to their existing banks and are more likely to constantly be on their phones. But a new survey from Marqeta, a fintech startup backed by Goldman Sachs and Visa, shows that Gen Xers are just as likely to have moved to such a bank, and are just as likely to want to move.

The bottom line: None of these products are particularly revolutionary, except insofar as their users tend not to hate them. If and when winners start to emerge, expect them to be acquired by the major banks, at which point Actually Pleasant Banking might start to become a mass-market phenomenon.

Go deeper: Despite rise of mobile money, millions still outside U.S. bank system

Go deeper

Scoop: Chime's fee income

Illustration: Aïda Amer/Axios

Chime, a fast-growing online bank most recently valued at $14.5 billion, derives about 21% of its revenue from fees its customers pay for using out-of-network ATMs, according to financial data obtained by Axios.

Why it matters: Banking alternatives like Chime aggressively market themselves to consumers who have been burned too often by bank fees. Chime claims it has "no hidden bank fees," while Varo advertises itself as "online banking with no fees."

Big bank bond trading soared in 2020

Data: Analysis of company filings; Chart: Axios Visuals

The pandemic helped to pull big banks’ bond trading revenue out of a multi-year slump.

Why it matters: Revenue within the so-called fixed income, currency and commodity (FICC) divisions has been slowing for years.

8 mins ago - Health

Florida records most new daily COVID cases since pandemic began

Nurses bring a portable x-ray machine to a treatment tent outside the emergency department at Holmes Regional Medical Center in Melbourne, Florida, set up to serve as an overflow area as the number of COVID-19 infections surges throughout Brevard County. Photo: Paul Hennessy/SOPA Images/LightRocket via Getty Images

Florida reported 21,683 new COVID-19 cases — the most in the state in a single day since the pandemic began, per data released by the Centers for Disease Control and Prevention on Saturday.

The big picture: Florida is now the U.S. coronavirus epicenter, with the Delta variant driving a surge, Axios Tampa Bay's Ben Montgomery notes.