How Wal-Mart and Google could steal young customers from traditional banks

How Wal-Mart and Google could steal young customers from traditional banks



Banks gets deposits from customers primarily for Saving accounts and FD's ,where they pay customers a guaranteed Interest rates.



In turn banks are investing money in stock markets or Gold or property where they hope to get higher returns or lend to Industry where also they hope to get higher returns.



If these competitors can offer interest rates like banks then the banks are doomed because these competitors have the customer base and the technology only thing they are lacking are  the skills to borrow money at lower interest rates and invest them properly so as to get higher interest rate in return on their investments.



Till these competitors do not learn this crucial skill , they will not be able to compete with the traditional banks.