Comments on: Bank Access Good or Bad? http://www.canajunfinances.com/2009/01/26/bank-access-good-or-bad/ Personal Finances and Consumer Concerns, essays, stories, examples and how to articles with a distinctly Canadian Point of View Fri, 19 Mar 2010 18:56:53 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Money Minder http://www.canajunfinances.com/2009/01/26/bank-access-good-or-bad/comment-page-1/#comment-3964 Money Minder Mon, 26 Jan 2009 13:41:25 +0000 http://www.canajunfinances.com/?p=2188#comment-3964 This is a win-win situation all around for the banks. They get to reduce overhead by having fewer branches fully staffed for fewer hours and charge higher service fees for teller services while also dinging clients for ABM transactions and debit card purchases. Consumers may be more conscious of their spending if they had to go to a bank to get cash before they could purchase something, but that would mean way less revenue for the banks (and dividend for those who invest in banks). This is a win-win situation all around for the banks. They get to reduce overhead by having fewer branches fully staffed for fewer hours and charge higher service fees for teller services while also dinging clients for ABM transactions and debit card purchases.

Consumers may be more conscious of their spending if they had to go to a bank to get cash before they could purchase something, but that would mean way less revenue for the banks (and dividend for those who invest in banks).

]]> By: gene http://www.canajunfinances.com/2009/01/26/bank-access-good-or-bad/comment-page-1/#comment-3963 gene Mon, 26 Jan 2009 07:12:11 +0000 http://www.canajunfinances.com/?p=2188#comment-3963 Imagine a world where our cell phones had a coin slot on them and we had to plug a quarter in it every minute while using it. I think cell phone use would drop dramatically, since it would become a conscious decision to use it. My intuition is that if we lived in a cash-driven economy, we would be far more sparing with our purchases. So, with regards to banks, we'd be more frugal with limited access to cash, especially if we also got rid of debit and credit cards, and cheques. Imagine a world where our cell phones had a coin slot on them and we had to plug a quarter in it every minute while using it. I think cell phone use would drop dramatically, since it would become a conscious decision to use it.

My intuition is that if we lived in a cash-driven economy, we would be far more sparing with our purchases. So, with regards to banks, we’d be more frugal with limited access to cash, especially if we also got rid of debit and credit cards, and cheques.

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