[HN Gopher] The Branch Banking Model
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The Branch Banking Model
Author : smitop
Score : 35 points
Date : 2022-09-01 16:51 UTC (1 days ago)
(HTM) web link (bam.kalzumeus.com)
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| Cupertino95014 wrote:
| No one goes to a physical bank anymore, right?
|
| Wrong. If you happen to get to a branch at 8:55 am to use the ATM
| (assuming they open at 9:00), you'll see a line of people waiting
| to get in. Are they all just old people who don't know any
| better? A quick inspection will show that they're not.
|
| One reason I've gone to one was to get a bunch of $100 bills to
| pay for my puppy at a breeder. For some reason, breeders tend to
| insist on cash. I suppose there are less legal reasons to want
| $100's, but I wouldn't know about those :)
|
| Continuing with "choice of denomination": if you operated a
| retail business, or you were having a garage sale and you wanted
| a whole lot of variously sized bills to make change, you might go
| to the bank.
|
| Turning in coins? Lots of stores have coin machines, but they
| take a commission out if you want cash and not store credit.
| neilv wrote:
| Modern US $100 notes have more anti-counterfeiting features
| than the other ones.
|
| Wanting cash can be to lower costs and risks and admin
| headaches, especially if it's just a small side business. Cash
| can also be for tax avoidance.
| Aspos wrote:
| Perfectly valid arguments for installing a modern, 4-cassete
| Diebold atm with a cash recycler and, optionally, a coin
| hopper. Such a device costs about $40K and is much cheaper to
| operate than a branch.
| jjtheblunt wrote:
| Are breeders illegal around cupertino? I thought everyone was
| adopting rescue dogs and putting breeders out of business,
| adopt don't shop and all.
|
| i know LOTS of pet families and the impression is based on
| them...but a few do have breeder bred dogs.
| Cupertino95014 wrote:
| They're not illegal anywhere, AFAIK, and you can just go to a
| dog park, see all the pedigreed dogs, and talk to the owners
| to know that breeders are doing just fine.
|
| There might be licensing rules, and a lot of the owners
| you'll talk to got their dogs from somewhere in the sticks,
| maybe for that reason.
| ghaff wrote:
| I like to have a few $100s for traveling internationally--
| although in general it's hard to predict if they'll be accepted
| in the US. At some point, the US got incredibly conservative
| about changing currency denominations. It's also been my
| experience that the average bank branch doesn't keep a bunch of
| hundreds laying around--though I imagine a downtown branch is
| probably better.
| Cupertino95014 wrote:
| You just reminded me that I was in London, I think, and for
| some reason I was really glad I had an emergency $100 in my
| wallet. Debit card didn't work, or something. It's been a
| while now.
|
| > the average bank branch doesn't keep a bunch of hundreds
| laying around
|
| Is that what you've found? I think asking for 10 or 20 would
| usually work. If you wanted $200,000 worth, you might get
| asked a few questions :)
| rufus_foreman wrote:
| The ATM I use lets you set the mix of denominations it returns.
| Which is good since it recently started giving out all $100s by
| default.
| rr888 wrote:
| Yeah I value a few branches around. I'd hate to rely my finances
| on some startup with an app that could stop working any time. A
| branch gives some idea of permanence. Maybe its an illusion but I
| just dont trust virtual only banks.
| metadat wrote:
| Definitely an illusion, banks are about making a buck, or lots
| of bucks, full-stop.
|
| Bankers are the greediest of the greedy of humanity. Don't
| trust them to look out for your best interests any further than
| you can throw 'em.
|
| Some individual ones might be nice enough people, but the
| system at large encourages and rewards certain very self-
| interested behaviors.
| hn_throwaway_99 wrote:
| I totally understand not wanting to use a "fintech", which is
| usually not a chartered bank.
|
| But Chase, BoA, etc. etc. all have very good mobile apps. I
| still don't see why you would hardly ever have to go to a
| branch if you used one of these apps.
|
| The right answer, as pointed out clearly in the article, is
| generational. Older generations normally have much more wealth
| than younger generations, and that's on top of the fact that
| millennials have a lot less wealth at this stage of their life
| than baby boomers did.
|
| So the vast majority of wealth held by retail banks is for
| people who got most of their wealth, and certainly most of
| their banking experience, before online banking existed. I have
| a strong sense that once that generation passes that bank
| branches _will_ go the way of the dodo, or else completely
| transform into something else (e.g. like what some banks are
| trying to do with "coffee shop" branches).
| dragontamer wrote:
| The most surprising thing for me was... well... this tweet
| discussed.
|
| https://twitter.com/patio11/status/1181062074316681216
|
| There's more bank tellers today than ever before, despite the
| proliferation of ATMs. Strange.
| lantry wrote:
| I'm curious if this also applies to credit unions. I understand
| they are structured and regulated slightly differently but it
| seems like they're subject to a lot of the same pressures.
|
| I use credit unions pretty much exclusively and have never done
| much business with a bank, but it seems like they are mostly the
| same from an end-user perspective. Is the anecdote about "being
| ambushed [by a salesperson] upon walking in" a common occurrence?
| This has luckily never happened for me at any credit union.
| kactus wrote:
| I'm curious about this too, as I've only used credit unions and
| branchless banks. Credit union branches are plastered with loan
| and mortgage advertising, and the people who handle the loans
| are salespeople, but I've never been "ambushed" upon walking
| in.
| revskill wrote:
| If not for the purpose of getting the salary, no need to open a
| bank account for me.
| ghaff wrote:
| A lot of people who own houses, pay service people of various
| kinds, etc. still write checks pretty regularly. There's more
| acceptance of credit cards and things like Venmo--which I
| believe have a premium to put on a credit card--but I still
| write checks for a lot of things in the US.
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