# 1 .Current banking services (Traditional banking )

People in the developed world will most likely have a bank account that they use for their simple everyday financial needs. Popular retail banking services include things like:

\- Trading Bank Account: Your daily trading account usually gives you low-interest rates. The APR will most likely be below 2% these days.

\- Higher Interest Term Deposit: Where you deposit money on a fixed rate and term. Usually gives you a higher interest rate than your trading bank account. Will come with a penalty fee for an early break. The banker then uses your money for fractional banking.

\- Unsecured Loans&#x20;

\- Smaller-sized loans are called Personal Loans based on your credit history. You don't require collateral to secure your capital, but the risk of default for the bank is minimized through higher interest rates.

\- Mortgage Loans&#x20;

\- Larger loans such as Mortgages and Margin Loans. You will need to provide collateral to secure funding. If you fail to pay the debt, the bank will seize and sell your property.

&#x20;\- Trading accounts: For trading securities and derivatives markets. You may be charged a transaction, custodial, or administrative fee.

\- Insurance: A place where you pay premiums for a variety of insurance in case things don't go as planned. Examples might be Life, Health, Family and Content Insurance.

\- International Money Transfer: Exchanges and transfers of legal currencies across borders.

\- Credit Card: A plastic card that uses MasterCard or the Visa network to let you buy miracles. Seller is charged about 3%, most likely passed on to the consumer. You may also be charged an annual membership fee. Reward programs can be attached to cards allowing you to earn points and redeem rewards.

\- Retirement Account: A regular contribution account comes with attractive tax benefits. These funds are usually locked away until you retire around age 65.\


Basically, at the simplest level, the Bank acts as an intermediary between the Depositor and the Borrower. They are tightly regulated by Agencies and Governments so certain types of trust can be established. For that trust, you have to pay a bank fee.

But things are changing with Blockchains and DeFi apps. Now trust can be established in computer code.\
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