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Topic: How do banks generate income? - page 5. (Read 1227 times)

sr. member
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stead.builders
June 07, 2023, 09:12:27 AM
I'm sure the bank will rotate its customers' money as investment capital which is profitable for them. so they can still return the money we save in the bank as customers, they also benefit from their investment, which should use our money. but they are really good at choosing the industry in investing. they must succeed on average their investment rarely experience losses. I believe this is the main income from banking.

As long as we keep using the banks, they keep having the opportunities of using our financial asset to make their own additional money through the deposit we made with them, they make use of this same opportunity in their own favour by making unnecessary and unexpected deductions on our money, charge us any amount serving as bill over the use and maintenance of our bank account, ATM card and other uncalled means like sms alert charges, stamp duty etc. We could see a variety of ways they source out from us means of financial illegal generations from our money.
sr. member
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June 07, 2023, 08:22:59 AM
Currently the most famous financial services are banks, because they can do many things related to the needs of consumers or customers, and they very much benefit consisting of several things as you have mentioned, then banks are currently one of the institutions that can get very large profits until they have many branches in all regions, When there is a problem in the bank, many business people feel disturbed because they cannot make transactions as usual, and for the future the bank will always be a mainstay for all people.
hero member
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Leading Crypto Sports Betting & Casino Platform
June 07, 2023, 05:46:56 AM
Financial institutions (banks) are responsible in handling financial issues, records, accounts and income of individuals, companies, churches and organizations. They respond promptly according to your demands on your accounts, they also have zero tolerance for fraud and are very security conscious, security intelligence and anti financial crime expertise but they've policies of not collecting dime from customers accounts yet banks are most wealthiest institutions on earth.
I want to ask a question to people who have a large amount of savings in the bank, come and don't say beforehand that you want to withdraw all the savings you. See how their employees react? I believe in their safe there is no cash that can be given directly to you and they have to call the center to get the money to the branch. That's how they manage the customer's money and I also remember how the bank only keeps the total value of your money but they never keep the physical amount in their safe. There are many problems with this system and it is like a cash cow that will continue to drive human dependency.

I don't want to get into how they make their money because they are a financial institution and automatically there are many ways for them to make a profit. If you are from Nigeria, have you ever experienced a time when your fiat currency was scarce and not accessible to services when you wanted to withdraw money and I remember a post from my Nigerian friend saying they were short of physical cash in the bank resulting in long queues at that time.
hero member
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June 07, 2023, 04:20:07 AM
Quote
* mortgage - using some billionaires account to buy housing properties and leasing them
* estate and lands with same patterns
* SMS alert charges
* Transfer charges
* Syphons dormant accounts or dead people accounts that are inactive with enough money in it.
* ATM and investment cards
* sales of currencies like dollar to naira
* preparation of international documents
* savings people's valuables like gold, certificate, court documents, WILLS, and so on.

As stated here, banks earn through various methods but the biggest source of income for banks is income from debt interests. This income method is provided from the interest difference that occurs after the deposits deposited in the savings accounts in the bank are transferred to individuals or businesses in need of money with a higher interest rate. In this way, individuals or companies that have savings and individuals and companies that need borrowed money can meet their needs reliably. This is the biggest source of income for every bank as I mentioned.
The biggest source of income for banks after this is obtained from the usage fees of the services offered by the banks. The commission income generated by these services offered to customers is also a method for banks to generate high amounts of income.
sr. member
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June 06, 2023, 10:41:57 PM
Financial institutions (banks) are responsible in handling financial issues, records, accounts and income of individuals, companies, churches and organizations. They respond promptly according to your demands on your accounts, they also have zero tolerance for fraud and are very security conscious, security intelligence and anti financial crime expertise but they've policies of not collecting dime from customers accounts yet banks are most wealthiest institutions on earth.

How do they make money?
* mortgage - using some billionaires account to buy housing properties and leasing them
* estate and lands with same patterns
* SMS alert charges
* Transfer charges
* Syphons dormant accounts or dead people accounts that are inactive with enough money in it.
* ATM and investment cards
* sales of currencies like dollar to naira
* preparation of international documents
* savings people's valuables like gold, certificate, court documents, WILLS, and so on.

This is what makes financial institutions very wealthy.


that's what only appears outside, what actually happens inside is much dirtier than that. I know because I have a friend who works in banking, he said that many of them are involved in money laundering, bribery, asset hiding and many other dirty practices. so do not be surprised that banking is one of the dirtiest institutions in the world.

if they don't do these dirty practices, it will be very difficult for them to survive and retain their customers. especially if they have super-rich customers, they have to keep their customers from running away to other banks, and keep the assets of their customers safe with them.
legendary
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Leading Crypto Sports Betting & Casino Platform
June 06, 2023, 10:27:19 PM
LOL.. it is easy to see how banks are generating income. I have a plot loan with one of the banks. When I initially took the loan, the interest rate was 6.6% per year. That was one and half years ago. Now the interest rate stands at 9.3% per year. On the other hand, I have term deposits with another bank, and the interest rate has remained unchanged at 5.5% per year (we need to pay tax on this interest income as well). When they are taking money from us at 5.5% and then giving out the same money at 9.3%, how can they end up in a loss? My only question is where all these profits are going.
hero member
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May 22, 2023, 10:33:27 AM
Besides all what OP mentioned I hate it when they charge a high-interest rate if you take a loan and give you a very small interest if you deposit money, the same money that they are going to use to loan people, they have a charge on all your transaction even checking your balance, banks are a necessary evil, you cannot go around your business without a bank's help but with Cryptocurrency's adoption some of the things we need in a bank are now provided by Cryptocurrency and that is getting a good interest by holding Cryptocurrency.

I guess this is how banks operate and earn money due to the liquidation that they engage in. Imagine, you are loaning millions of dollars daily and the return rate of such loan takes time on their side. While this may be convenient for the people who took out the loan, this will also cost them money in the long-run due to the interest rates being paid.

Personally, investing in banks should be considered if they offer low interest rates. If you are planning on taking a loan also, go for shortest time since the longer you pay out the interest rate, the more expensive it would get in the long-run.
hero member
Activity: 2352
Merit: 594
May 22, 2023, 09:45:16 AM
Interest from loans was their real main income, which included things like having your title to land lent to them, motorcycles, and anything valuable. It seems small on a monthly basis, but if you total it, that is really huge, and it is almost the same price as what you've borrowed; you just didn't notice it. Also, I've noticed that in small banks, they always have easy loans for you that you can avail of easily, as that is their source of income.
sr. member
Activity: 546
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🎗️🍁🎭
May 22, 2023, 09:02:25 AM
Banks generate income usually through interest. Banks make loans and typically charge an interest rate on that loan. The loan from the bank to the customer earns interest on the loan and earns income for the bank. And banks are charged legal fees for every transaction which serves as a source of income for the bank. and from these fees the bank earns various margin profits along with rising cost of their operations. Banking provides savings services where customers have monthly savings added to their accounts.
sr. member
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May 22, 2023, 04:05:41 AM
Banks that can collection of money from consumers are certainly very benefited, they will easily provide loans to anyone with interest that can reach 3x than interest given to customers, besides that usually banks also buy shares or investment products that have very good and certainly safe value , for example, a government debt letter that can provide a profit of at least 200% compared to interest that must be paid to customers.
hero member
Activity: 1246
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Rollbit - The #1 Solana Casino
May 22, 2023, 02:54:50 AM
I'm sure the bank will rotate its customers' money as investment capital which is profitable for them. so they can still return the money we save in the bank as customers, they also benefit from their investment, which should use our money. but they are really good at choosing the industry in investing. they must succeed on average their investment rarely experience losses. I believe this is the main income from banking.
The bank benefits from the loan interest given to the borrower with an agreed guarantee. Then from the ATM card one of the sources of income they get. Regarding them using the customer's money for other activities as long as there was an agreement between the two parties at the beginning, I think what you are conveying is only an assumption because customers have rights and obligations that must be obeyed by the bank.

The customer has the right to the money deposited in the bank because initially the customer and the bank have agreed on an agreement as evidenced by the signatures of both parties.
Before the customer chooses a bank to save money, of course the bank will explain the product to the customer and the customer needs to know all forms in detail.
Banks are required to return customer deposits when all terms and conditions have been completed in their intact form which are still valid for valid payments in conducting transactions.
sr. member
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Just.bet - Decentralized On-chain Casino
May 22, 2023, 02:21:07 AM
I'm sure the bank will rotate its customers' money as investment capital which is profitable for them. so they can still return the money we save in the bank as customers, they also benefit from their investment, which should use our money. but they are really good at choosing the industry in investing. they must succeed on average their investment rarely experience losses. I believe this is the main income from banking.
full member
Activity: 532
Merit: 229
May 22, 2023, 01:48:26 AM
Generally, a bank makes most of its income through loans, you leave some money in the bank at 5% interest, then the bank lends that money to others at 10% interest. Then at the end of the year the bank gets 5% profit. This is how banks make money through giving loans. About 90% to 92% of money banks earn this way. Banks have other ways of making money, one of them is making money through credit cards. Banks that issue credit cards to people spend the money on the credit card and have to pay that money back with "interest" every month. And banks charge them "high interest" for late payments. This is how the bank earns money. Banks also earn money in various other ways.
sr. member
Activity: 1008
Merit: 366
May 21, 2023, 03:26:05 PM
And what part of the cryptocurrencies stop them of still making it?

Man, i think a lot of you need some basic economic class, we LIVE in CAPITALIST system, and that system requires ever debt and other things to keep moving.

If you have a industrie and needs to change your equipment, you go to the financial system and take a loan, with that money the system put that money in work, in traditional one, with normal interest rate, assets , bonds ,etc, in crypto they can put in a pool who give them X %, so what its the diference?. Stop dreaming.

Or we dont have here in the forum a lending section?.

You forgot one thing about crypto. In this case, I am talking about Bitcoin. It has limited supply, which will prevent it from inflation. Can you say the same thing about fiat money, which banks use? Banks will print more money and “HELP” you with it. The rich will get more rich and the poor will struggle. This is the reality with traditional banking. With crypto, the concept stays the same but many things changes with it. And trust me, those are not bad things.
We need full adoption of crypto and use it as a replacement of banks. But as we know, as long as there is demand, people are bound to use it. So we need a way to ensure that they both can co-exist in the same ecosystem. Banks are necessary evil, IMO.
sr. member
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Undeads.com - P2E Runner Game
May 21, 2023, 12:22:50 PM
This is what makes financial institutions very wealthy.

You forgot one of the most important sources of revenue for banks which is interest from loans. Banks charge a certain percentage of interest for loans given to individuals and businesses. Banks also engage in business partnerships with individuals and companies. They can fund a project and the profit from such a venture will be shared between the parties involved. They can also serve as middlemen between investors which can make them earn commissions.

Banks also make money through buying and selling foreign exchange. During scarcity of foreign currencies, banks can make high profits from sales of these currencies to customers. Commission from service rendered is another source of income. Banks can get a commission for receiving payments on behalf of the government or other corporate organization

revenue composition may vary for different banks, depending on their size, business focus, and geographic location. Additionally, banks also earn income from other sources such as investment banking, wealth management, insurance services, and asset management, but those may not be as directly related to traditional banking activities.
legendary
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Goodnight, o_e_l_e_o 🌹
May 21, 2023, 10:42:31 AM
  • The dead of their customer, who do not have a proper way of handling money to their next of kin. All their money goes to the bank
Heirs, children, wives or husbands are people trusted by the bank for funds from customers who have died. If the bank does not want to return the customer's funds to their heirs, then it is clear that they can be sued for a cunning plan.

Have you ever found a bank freeze the funds forever of dead customers while they have heirs?
I've honestly never heard of it, but banks aren't very trustworthy in certain cases. The reputation of the bank is bad, especially when people are familiar with the modern financial system which is called decentralization.

But can you atleast imagine a scenario where the heirs, children, wives etc are not aware that the deceased operates an account with a certain bank. Does the bank go around, finding a way to disburse su h money. Or atleast, after 5yrs, do banks make public some dormant accounts to verify if the account holders are still living?
sr. member
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Hire Bitcointalk Camp. Manager @ r7promotions.com
May 21, 2023, 07:32:11 AM
To be honest banks no need to make money by doing all these but they do for the sake of keeping the balance and trying to show you that this is also some kind of business however banks can create money out of nowhere I mean the central bank of a country and they distribute it to all the banks and let them to inject the printed money in the name of loan. The interest rate difference and all other charges are like side hustle for them.

Banks generate income by increasing their value and going into public market ad IPO, many banks made money in that way as far as I know which is huge compared to making money in actual way.
sr. member
Activity: 1036
Merit: 276
May 21, 2023, 05:02:23 AM
there are so many ways. the mains are interest on loans, interest on deposits, fees and service charges, credit cards and payment services. believe me they earn too much.

legendary
Activity: 2282
Merit: 3014
May 20, 2023, 01:32:52 AM
As a long time financial advisor, and someone who’s worked closely with banks throughout my career, the main reason I “got in to” bitcoin back in 2014ish was my utter disdain for banks and how they were ran. So much corruption and bullshit, and I was fascinated and blown away with the technology that bitcoin brought to the table for the first time.

You forgot to mention they make money, A LOT OF MONEY, by scamming the shit out of their customers.
sr. member
Activity: 1988
Merit: 453
May 20, 2023, 01:32:34 AM
#99
Bank utilize customer's money to make more profit from there, like giving loan and collect interest or investing on stock market. They also utilize customer's money for their personal gain as well. Investment is the source of bank, more we invest, more they earn. Apart from this they earn from If the account falls below the minimum balance it may be assessed fees for not maintaining minimum balance. Bank generate more income from locker rent, trading profit. Message alert charges, ATM charges, transaction charges etc, which people never notice.
 

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