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> Today banks uses fee for everything and everyone is ok with that They actually don't. Most ATM fees and inter-bank payments (at least in the UK / Europe) are
by pebers 8y ago
> Today banks uses fee for everything and everyone is ok with that
They actually don't. Most ATM fees and inter-bank payments (at least in the UK / Europe) are swallowed by the banks rather than exposed to customers.
> So yes, it is very possible to make a profit by not only having those things but having that without fees.
How? As far as I can tell you're describing a bank that runs deposit accounts but doesn't loan the money back - that is not obviously a profitable enterprise. Something in the whole scheme has to make some money to pay for the employees, the infrastructure, and all the other fixed costs.
- cryoshon 8y agomaybe by buying inflation indexed bonds on a rolling basis. nab something like 1-2% interest on the customers' money in an extremely safe investment vehicle, then return most of that to the customer after paying off infrastructure costs. (does this work? i have no idea whatsoever)
- gcbw2 8y agoAH, Europe. In the US you pay around $1.5 to $4 per withdraw, because the ATM network is a private enterprise not owned by the banks. You will get there, unfortunately. And you completely missed the point. Loaning/re-investing with volume is a very sure way to make money, and was what banks used 30+ years ago. now they pad it with fees for everything.
- pebers 8y agoThe ATM network here is also not owned by the banks (similarly FASTER payments, they are members of the scheme but there's a third-party that administers the network). They pay for access, but don't pass that cost on. And I did not miss that point, thank you. I just disagree with it. I don't think banks make their primary income from fees; current accounts are still basically a loss leader.