Exactly - banks make money with money, but it's the money that real people use in the real world for real goods & services!!
Want to buy a house? (Mortgage)
Want to spread out the cost of a large purchase (car/boat/appliance)? (Credit card, consumer loan)
Want to borrow money to pay contractors for home improvements? (HELOC)
Want to pay for a coffee with a payment that is accepted in seconds? (Credit/Debit card or you know.. paper money)
Want to save excess income in an interest-bearing account? (Savings, Money markets, etc)
Want to invest excess income in partial ownership of income producing businesses? (IPOs, stock market)
If banks don't make money with real use cases, please close all your accounts and attempt to live a week or a month without any interaction with the banking system.
The banking system matches borrowers and savers of different risk profiles & durations so that people can go about their lives in a more convenient fashion.
Right now DeFi is replicating some aspects of this in a fraud-laced decentralized manner except with an alphabet soup of crypto "money" which you can't do anything with other than trade it for more/other crypto "money" or the dirty-word "fiat".
Want to buy a house? (Mortgage) Want to spread out the cost of a large purchase (car/boat/appliance)? (Credit card, consumer loan) Want to borrow money to pay contractors for home improvements? (HELOC) Want to pay for a coffee with a payment that is accepted in seconds? (Credit/Debit card or you know.. paper money) Want to save excess income in an interest-bearing account? (Savings, Money markets, etc) Want to invest excess income in partial ownership of income producing businesses? (IPOs, stock market) If banks don't make money with real use cases, please close all your accounts and attempt to live a week or a month without any interaction with the banking system.
The banking system matches borrowers and savers of different risk profiles & durations so that people can go about their lives in a more convenient fashion.
Right now DeFi is replicating some aspects of this in a fraud-laced decentralized manner except with an alphabet soup of crypto "money" which you can't do anything with other than trade it for more/other crypto "money" or the dirty-word "fiat".