What services do banks offer the public? They began by providing a ‘safe’ place to keep currency. They began to offer loans soon after. Thanks to fractional reserve regulations, they were able to loan many multiples of deposited assets. In time, the definition of qualifying bank assets became more liberal and flexible. In short, banking services offer security, convenience, and credit based loans. They make profit on charged fees and interest.
Banks are enablers. They enable people to function within a fiat based currency system. People have come to rely on credit cards and debit cards provided by banks. Banks offer bill paying services as an alternative to writing checks or using cash. I have not written a check in years.
With the exception of offering credit based loans, blockchain based crypto currencies and personal hardware wallets offer greater security. With crypto, there is no third party risk. When you use a bank, you run the risk of bank failure. This risk does not exist with crypto currency.
All that remains of ‘value’ in banks is their ability to sell loans. I can see the future when loans of crypto currency will be a separate industry.
Think on the possibility of a bank less future. We really don’t need credit and loans to function.
Here is today’s beauty.