"Fintech Disruption - E-book - ePub

The banking industry is an intermediary group that bridges the distance between savers and borrowers. When you deposit your cash right into a financial institution, it is not merely saved in a vault ready to withdraw it later. Instead, the financial institution uses a giant element of those deposits to lend to individuals, groups, and governments looking for loans. This technique of recycling deposits into loans is the cornerstone of the banking industry.