Today, the banking system is very adapted when it comes to its own enrichment. The best economists and bankers lined up this system for a very long time, and everyone who is looking for ways to rationalize and increase their own assets has a lot to learn from banks and their effective business. Most of the average bank earns through bonds. A rather popular and easy way to get rich is to buy bonds. By purchasing this document from the bank, it undertakes to pay you their full cost within a fixed period of time. In addition to this, you get a percentage of the amount invested. Additional money is accrued while the bank uses the money, and not after the payment of the money invested. Thus, the bank borrows from you. It is recommended to buy bonds through brokers.
There is also a reverse side of this scheme, you can always take a loan from a bank. This way is very simple and known to everyone, you just take a specific amount from the bank, and then return with interest. Before you get a loan from a bank, you must have a good credit history, because any bank is not interested in “knocking out” debts from you. In the distant past, people borrowed money from so-called usurers. The conditions were very tough, people often fell into slavery or other troubles. Banks have made this process safer and more accessible, thus it is one of the reasons for the great success of banking.
The third way by which banks earn large sums of money and keep them afloat are payments with the help of credit cards. Previously, people dealt with intermediaries. In case they had to pay someone money, they also always should carry paper money or gold with them. The first ATMs with the help of which it was possible to withdraw money appeared in the late 60s. Cashless operations brought people a lot of convenience, replacing the "mountain" of money in the wallet with a miniature credit card that operates with electronic signals. Banks guarantee that you can easily transfer or receive money anywhere in the world, and the service provider in turn will take all the responsibility for the security of the transaction for its clients. Every time you use the credit card, you should pay small share of money that is used for operation. It has the name of "interchange fee". This sum is usually lower for debit cards than for credit ones.
It is nice to know that traditional banking systems can be replaced with distributed ones like blockchain.
They possess a lot of advantages related to banks and rapidly gain in popularity.