Cryptocurrency is a revolution and it is capable of making significant changes in the payment industry as well as the blockchain itself is a highly advanced technology that can empower businesses. We talk about cryptocurrencies a lot and how they can empower us but at the same time we also need to understand that we are still dependent upon banks for various things.
Bank is an organization that does a lot of monetary things including money management, deposit services, money lending, and much more. Most of these services are also available in the crypto space but the access ability has not grown a lot because very few people are in crypto. Banks are part of traditional finance and they have a presence across the country where people can access their office and avail their products.
Deposits
This is the core feature of banks for individuals where we can deposit our money and this can be used for various purposes using the bank account and even it can generate some returns as per the products. Some people still believe that banking is the best option for them when it comes to investment and they are not familiar with crypto or something else. We need a bank account to get our salaries credited and even to operate a business in the country to receive the payment. We have not been so advanced that without a bank account, we can run a business or even we can work with any organization because this is a primary requirement. Now things are much more advanced with the technology but it's still some so many people like to visit the branch for any deposit requirement as they are familiar with the mechanism and any change on that will be difficult for them to adopt. Although now we have the option to deposit money in ATMs it's still a major chunk of people prefer to widget bank branches for this purpose.
Lending
Whenever we think of availing loan services then the bank is the only option that comes to our mind. Be it a home loan car loan or any other loan that we need but for this purpose, we are dependent upon banks because not everyone has enough money in the beginning to buy big assets. I would say banks are very helpful in this because they help us provide the money however we need to pay them back along with interest but at least we have the option to get the funds when needed. There are certain formalities and procedures that we need to follow and if we are eligible then banks provide the required amount that we can use to buy big assets like a home or car etc. It is a nice financial help that banks are doing for individuals and even for businesses. There are certain products in which banks also offer subsidized interest rates so that they can support the communities and these are mostly for the education loan or agriculture alone because this way they want to support the economy and the communities.
Credit Cards
I own multiple credit cards from different banks because I believe it is a needed product for me since I mostly spend online and with different cards I get higher limits for the transactions. Although we have credit cards supported by some crypto companies still they are limited and in India we cannot use so the only option we are left with is to use the cards provided by banks. I use credit cards for most of my expenses and pay the outstanding on time so technically I do not pay anything extra to the bank. While I use the bank's money for my expenditure and do not pay extra so this is a benefit that I'm getting from the bank based on my credit reputation. Of course, some people do not pay in full and they are charged heavily by the bank which can be called as one of the sources of revenue for the banking system.
There is an additional benefit that I get whenever I use a credit card then I get rewarded with some rewards point that I can redeem later for something as a product or even as cashback which is an additional benefit to me without paying anything extra to the bank. I know that there are some charges which are divided by the bank whenever I use the card for the purchase but these are not added to my account so I'm fine with it because these are deducted from the merchant amount.
ATM for any time and Anywhere Money
with the banks we also get the facility to withdraw cash whenever we need it anytime from their ATM points. This is another benefit provided by the banks to all the account holders and as a benefit we need not carry cash every time since we have the option to withdraw it whenever we need so it is a convenient service that comes to us at no extra cost. Some banks provide limited transactions but that is OK as long as they are providing the same services to all the account holders and the limit and charges may vary depending upon the product type.
While we are more into crypto which is good but I don't see crypto replacing the Fiat currency real soon and This is why the banking system will not be obsolete. I do understand that they need to adopt advanced technology in their operation to make it more efficient and cost-effective and blockchain can be the one. I cannot predict the future but in the current scenario, I don't see banks going anywhere for this decade at least because there is a lot that they are doing. Just in case they adopt the revolutionary technology and integrate themselves with the crypto ecosystem then I'm sure they are going to get benefited a lot which will add more numbers to their revenue.
As I say the future for crypto is bright so similarly your banking system adopts the change in the form of technology then I also expect that they will be much better in the coming years than they are now. I have listed out only some of the points above but there is a lot that banks do as part of their banking operations.
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Your idea that there must be integration between crypto and traditional banking is intriguing. I do realize that Bitcoin, in particular, is a different financial system, but it cannot compete with the years of maturity of the traditional banking system. Therefore, it is a good idea to combine the two. I think Michael Saylor is also constantly saying that the dollar will live on, but only on a Bitcoin railway.
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Ya we really won't even though I like how we can control our own money in Crypto. To be honest my friend/mentor has been telling me about a digital US dollar. This will probably happen eventually since those people :) in the higher position keep thinking they can help inflation but really they never do. AT the same time, its kind of scary because the govt will also be able to track where all this digital money is going if they implement this :').
Anyways I also do have money in banks but it's scary when you see on the news of all these banks getting bank run and people not being able to withdraw money. Wish we could just store money in like a metamask app or soemthing and pay thru there in the future. that would be cool O.O I think. Hopefully that's happening in the future but who knows.
Banks serve some useful purposes that is hard to do away with. They will be around for awhile but I think they need to make some drastic changes to adapt to the changing times. Their old models no longer work efficiently.