Banking Assignment Example | Topics and Well Written Essays - 1250 words

Banking - Assignment Example Consumer banking is reported as an alternative in the banking sector and investment platform that many investors consider as an option. The article reports consumer credit as a viable investment due to the increasing number of borrowers that seek money for different reasons. The report also indicates $880 billion as part of the revolving consumer debt currently accumulated by the population. The most interesting aspect of the development is that many people are willing to obtain debt and pay back at very high interest rates with a n average of 15%. Considering the loss rates registered by these kind of facilities and the level of losses involved are very low as at 2.52% in relation to JP Morgan Chase. Banks consider this a very lucrative opportunity and has taken deep into consumer credit. The advantage that the banks have over the other investors is that they obtain savings from masses that they use for the development of the finances necessary for investing into consumer credit. Consumer credit facilities stem in many forms as credit or debit cards, credit facilities for purchase of goods among others. The banks benefit more due to their level of interest earned compared to the interest paid to the owners of the savings. Kopp, Carol . "Plot Your Escape From the Big Fees of Big Banks." DailyFinance.com., 24 June 2014. Web. 28 Oct. 2014. . Carol Kopp explains more on how to escape the huge fees charged by big banks on the different transactions and accounts opened by customers. Basic banking services in major banks in the American financial sense. Escaping these banks would help on save more of their money. The hiking of the fees in huge banks has is known to have originated from the 2008 financial crisis from which many banks suffered losses. These banks especially the big ones hiked fees and basic charges on the simple banking