Banks are primarily market makers in the credit market. They borrow money (via deposits) and lend it out, earning money on the spread. If you want to earn a yie

Banks are primarily market makers in the credit market. They borrow money (via deposits) and lend it out, earning money on the spread. If you want to earn a yield on your deposit, the bank will have to invest deposits, and this is not a simple process. Each investment requires separate handling, where the bank bases its offer price on the risks associated with that particular project. I'm not saying it can't benefit from some sort of automation, only that it's a non-trivial task, not easily automated. This is traditionally what banks do. Of course, if the debtors-to-be can get better conditions elsewhere -- like a zero interest loan from Kickstarter -- they will go there. But as long as people want to earn interest on their savings, there is a place for banks.