Why do some banks operate regionally, someone in the north part of a state is told they can’t open an account with a bank in the south of the state.

Question

With the rise of on-line banks this may be obsolete but say the person can’t do on-line banking.

In: Economics

Answer 1

Like most asinine regulatory schemes, the concepts bank regs are based off of pre-date the internet, and don’t make any sense when disruptive things like online banking show up. They will stick around until the banks themselves stop being a thing, which is probably soon.

My bank and credit union are nothing more than sales floors now. Their service is non-existent unless you are trying to get a mortgage. They don’t try to create a world that benefits you, they exist to maintain the structures that keep them profitable and powerful.