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Do We Still Need Banks?

In simple terms bank is an institute that accepts money from the individual or the business entity and it safeguarding that money and then lends that money to a person or a business group as a loan. This is their primary source of income. They are the backbone of the economy. Lately, we have seen cryptocurrencies like Bitcoin have been accepted as means of exchange in many countries and their valuation is much higher than a fiat currency in the world. The current rate of Bitcoin is $56000. Here intervention of banks is not needed at all. 

What Are The Services Banks Giving Us

Some of the services provided by the banks are

  1. Our money is safe in the bank
  2. Record our banking details
  3. Receive salary or cash from others
  4. Provide platform doing financial platform
  5. Provide us Debit and Credit card
  6. Give Interest on money kept in the bank.
  7. Give loan, (Home, Vehicle, Business, Mortgage, Personal, Education, Gold)

Alternative To Banks

Cryptocurrency transfers are very easy and are available all throughout the day. They charge very less fees for that they do not have any holidays as banks have. Here the details of the sender and receiver are kept coded so they are safe as they cannot be disclosed. So the data privacy is given extreme importance in this. With the investment of applications such as Amazon Pay, Phone Pay, and other similar apps we can do our daily transactions much faster, liking paying utility bills such as postpaid bills, telephone bills, water, and  electricity. Pay your home loan installment, HDFC Insurance installment, we can invest in commodities like Gold here, there are also some mutual funds in which we can invest using these options. 

Why Has Banking Failed?

Thing is that banks had taken the general public for granted, people had to wait for ages to get their passbook updated, for depositing money, or even removing money. There was a limit for withdrawal,  the person had to go through a tedious process. Take an example of the cheque. It takes a lot of time to get deposited in our account if there is a mistake on it then pay the penalty that is applicable for both parties. If that person wants to cash in that cheque he will have to follow the same lengthy procedure again. For example, consider that is payment made by the vendor and the person is not able to encash it. If you are a businessman then we can understand your level of frustration. If any bank goes bankrupt then the money of the people goes for a toss. They cannot access their own hard-earned money, as all the accounts are frozen and left at the mercy of the bank.

Conclusion:

Time has come when the banks have to pull up their socks and perform or perish. There are other alternatives which are ready to be taken on them. There are some apps which are providing instant loans at the click of a button and apply for loans in traditional banks and see the amount of time it takes. They have to stop taking customers for granted and give service which is more customer-oriented. 

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