Bank 2.0. How would you build a better bank?
lsd5you: It's perhaps more a matter for regulation, but the current disparity between the value of the service and the cost should go. The customer should pay small, reasonable fees for everything. It is highly distortionary and is symptomatic of a dysfunctional market for banking services.In the UK a few years ago the 'public debate' raged over ATM fees. Banks stopped cooperating and started charging about 2 pounds to the customers of other banks. It was pointed out that the amortised cost to them for a withdrawal was 30p. There was outcry and now they charge nothing. Apparently there are but two stable pricing policies - exorbitant and 0.In general all basic banking is free, and they make profits by getting people into debt, or selling daft insurance schemes, or giving terrible rates of interest. Of course for the sensible individual this is not wholly a bad thing, if you can weather the hail of junk mail/promotions this business model entails and are prepared to move your savings account every year to make sure it has a reasonable return.In my mind there is no reason for credit cards to exist at all - if you want a loan or overdraft, then get one - really they are a conflation of services: Visa/mastercard + overdraft + purchase insurance. What is desirable is a debit card that has visa/mastercard (encouragingly these do exist more and more, but are not the norm) and purchase insurance. i.e something functionally equivalent to a credit card, but without the capacity to get the owner into debt.I like some of the other things people have suggested as well. Of course most of the ideas being voiced here are not exclusive!