I agree with you that the institution does not become the enemy. I had always envisioned in my head as by bringing in customers to a bank that bank gains levera

I agree with you that the institution does not become the enemy. I had always envisioned in my head as by bringing in customers to a bank that bank gains leverage too. So say you bring an extra 1 mil in savings accounts to a small bank, that bank now has X times as much to lend out as credit/leverage. Same goes for mortgages.