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> but I'm really confused as to why they always choose the most random obscure bank. Why not partner with a major bank.

Because major banks won't support startups looking to compete with them. Why would JPM, BoA, etc. service Mercury who is going after their SMB business banking vertical? Banking is a cartel in the US. The bank lobby makes it as hard as possible to compete with them.

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> Banking is a cartel in the US

US has more banks than any other country by a factor of 10.

https://www.helgilibrary.com/charts/what-country-has-the-mos...

And #4 for branches per capita: https://www.theglobaleconomy.com/rankings/bank_branches/

7x as many branches per person as Canada

Sure, those data sources are a bit sus, but I'm sure they're relatively correct. And dunno how credit unions play into it.

You're right. For the argument for the other side, the top four largest banks—JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo—collectively hold approximately 43% of all deposits in the United States, and in some ways they are self regulating or have a revolving door with their regulators. But we certainly have a lot of banks and anyone can buy a small one and give the banking business a shot.

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