> Today banks uses fee for everything and everyone is ok with that
They actually don't. Most ATM fees and inter-bank payments (at least in the UK / Europe) are swallowed by the banks rather than exposed to customers.
> So yes, it is very possible to make a profit by not only having those things but having that without fees.
How? As far as I can tell you're describing a bank that runs deposit accounts but doesn't loan the money back - that is not obviously a profitable enterprise. Something in the whole scheme has to make some money to pay for the employees, the infrastructure, and all the other fixed costs.
AH, Europe. In the US you pay around $1.5 to $4 per withdraw, because the ATM network is a private enterprise not owned by the banks.
You will get there, unfortunately.
And you completely missed the point. Loaning/re-investing with volume is a very sure way to make money, and was what banks used 30+ years ago. now they pad it with fees for everything.
The ATM network here is also not owned by the banks (similarly FASTER payments, they are members of the scheme but there's a third-party that administers the network). They pay for access, but don't pass that cost on.
And I did not miss that point, thank you. I just disagree with it. I don't think banks make their primary income from fees; current accounts are still basically a loss leader.
maybe by buying inflation indexed bonds on a rolling basis. nab something like 1-2% interest on the customers' money in an extremely safe investment vehicle, then return most of that to the customer after paying off infrastructure costs. (does this work? i have no idea whatsoever)
They actually don't. Most ATM fees and inter-bank payments (at least in the UK / Europe) are swallowed by the banks rather than exposed to customers.
> So yes, it is very possible to make a profit by not only having those things but having that without fees.
How? As far as I can tell you're describing a bank that runs deposit accounts but doesn't loan the money back - that is not obviously a profitable enterprise. Something in the whole scheme has to make some money to pay for the employees, the infrastructure, and all the other fixed costs.