Banking… how things have changed

   / Banking… how things have changed #41  
Here is a funny thing...

If $100 dollars is kept "digitally" and only processed through the banking debit card system, after 3,333 transactions that $100 will be all sitting in the bank as their profit. Every time a transaction is made, the card processor takes 3%. That $100 is no longer currency in circulation.

If 100 dollars is kept as currency and spend over and over again, that $100 will still be able to purchase $100 of value. That $100 stays in circulation.

This is why banks want to be all digital. They take a cut on each swipe.

Cash and debit cash are different mechanisms at play.
Does Amazon take cash payments?
 
   / Banking… how things have changed #42  
   / Banking… how things have changed #44  
There are a whole suite of products available in the "mobile" market, indeed off the internet, that makes the big banks look like the dinosaurs that they are. Try wire transfers for instance. With up to the minute exchange rates, internationally, no less. You can thank the younger generations for those FinAps.

The banking industry is ripe for disintermediation but their newfangled competitors are often just as venal and extractive. Many apps (not just financial) harvest data from your phone to sell to data brokers. Many financial apps are not FDIC insured. They may think they're not regulated (i.e. the entire cryptocurrency industry). Some of them have really lax privacy controls. For example with Venmo your purchase history is public by default! They consider that a feature.

So read the fine print and understand what they're really doing before you give them any money.
 
   / Banking… how things have changed #47  
Should be pretty obvious. With so much online buying now, what is the chance of really slowing down this juggernaught of control through electronic transfers?

Nothing. But being aware of why banks love electric transfers allows a person to maximize their cash purchases, to the degree possible.

That is all a person can do...and still function in society.
 
   / Banking… how things have changed #48  
Nothing. But being aware of why banks love electric transfers allows a person to maximize their cash purchases, to the degree possible.

That is all a person can do...and still function in society.
We don't disagree on that.
 
   / Banking… how things have changed #50  
The banking industry is ripe for disintermediation but their newfangled competitors are often just as venal and extractive. Many apps (not just financial) harvest data from your phone to sell to data brokers. Many financial apps are not FDIC insured. They may think they're not regulated (i.e. the entire cryptocurrency industry). Some of them have really lax privacy controls. For example with Venmo your purchase history is public by default! They consider that a feature.

So read the fine print and understand what they're really doing before you give them any money.
Yeah. I see the tv ads for some of these cellphone banks (Chime is one that comes to mind) and wonder what the catch is. If it sounds too good to be true it usually is.
 
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