Fintech vs. Traditional Bank Current Accounts
A new financial technology company is offering a current account that pays a competitive interest rate, unlike the near-zero rates from most traditional banks. The company's marketing states that traditional banks fail to offer interest primarily to maximize their own profits at the customer's expense. Evaluate the validity of this marketing claim. In your response, you must analyze the fundamental economic reason for the low interest rates on traditional current accounts and assess whether the fintech's higher rate is more likely due to a different business model or simply greater fairness to the consumer.
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Economics
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Introduction to Macroeconomics Course
Ch.6 The financial sector: Debt, money, and financial markets - The Economy 2.0 Macroeconomics @ CORE Econ
The Economy 2.0 Macroeconomics @ CORE Econ
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Fintech vs. Traditional Bank Current Accounts
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