Unless you are talking about internet banking - and low fee versions of this already exist - there are a myriad problems with depository banking.Mo wrote:I dunno, basic depository banking would be pretty easy and boring. All the employees would do is act as tellers. You can leave the money management to actual bankers.
Don't know if you've ever worked out front in a bricks and mortar bank, but we used to spend hours after closing finding errors for out-of-balance tellers.
Then there is the issue of cash security. When I was a branch manager, we had an internal loss of $2,000 that went missing because a teller did not maintain proper control of her cash (another teller was the prime suspect, but we never proved anything.)
There are issues of kiting, forged endorsements, cheque fraud, counterfeit bills, etc.
Just paying the tellers is a huge cost. Why do you think banks love ATMs? It isn't just the fees. For cash operations you have to have at least three unrelated people on duty at all times. It's easy for two to collude, a third person makes it more difficult. Behind that, you have to have your administration staff plus audit and inspection staff who are totally separate from your branch operation.
Top that off with the cost of the bricks and mortar and you have a giant cash sink.