China’s Predatory Lending
February 12, 2025
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With the advent of internet banking, a large part of the services that are offered by banks can be provided online as well. Therefore, a lot of entrepreneurs were of the opinion that brick and mortar banks have become obsolete in retail banking just as brick and mortar stores have become obsolete in retail sector. As a result, a lot of internet only banks came into existence.
Internet only banks do not have any physical infrastructure. Instead, they invest in high end computer infrastructure that allows them to serve their customers in better and faster ways. Many internet only banks have been granted charters in the United States in the 2000’s. They are a new breed of banks and customers are still experimenting with them.
Internet branches have their own advantages as well as disadvantages. Some of them have been listed as follows:
Security analysts have always been one step behind hackers. New and more complex techniques are routinely being developed to hack into other people’s bank accounts. As such, internet only banks do face a larger security threat.
People prefer to give money to people that they trust, people they can visit when required and be assured that their money is safe. Since internet only banks cannot provide this facility, they are lagging behind brick and mortar banks at this stage.
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