8Jul/100
Some thoughts on banking
As promised, here's a short post inspired by BankSimple's blog:
A lot of people don't fully understand how banking works at the fundamental level - especially when it comes to the fees we see as consumers. The basics are spelled out in this blog entry, which, admittedly, is somewhat of an indirect advertisement for BankSimple. It explains that since deregulation in the 70's, transaction fees have been the key to profit for large banks. Things may be changing with the new regulations, but we'll have to wait a few months to see how it all pans out.
