It used to be that when one thought about a bank, the first thing that would certainly pop into a personal head would be the creating that collects and later distributes money. This to most folks of the world is a bank. A solid structure in which our money is stored. However, as more and more individuals become inclined to review finance and economics, we have come to perceive banking institutions slightly different, because ideas of The Government Reserve and other these kinds of constructs emerge into our conscience.
However, today even that paradigm is being challenged when we stop to consider the internet checking account. This is a most strange and interesting concept. Yet what exactly is an internet savings account? Basically it is nothing thus esoteric or elaborate, but rather is simply a “go-between” for 2 real brick and mortar banking institutions.
Nearly everyone has been aware of Western Union and utilized its providers. A person simply goes to a store that has WU when one wants to “send” money in order to someone, somewhere in the world (often on the other side with the globe). Most places that program WU are grocery stores or perhaps liquor stores or perhaps the relatively new “money lenders” that desire that they were banks and act accordingly by making loans at excessive charges.
What happens with American Union is very similar to what happens with an web savings account. One end indicators to the other end in which money has been paid in to “the cache” or “the system” if you will. This permits the WU on the other end of the world know that they can properly give money to whoever is designated to receive it.
The one location where an internet savings account differs is that the complete money system becomes even more abstract than with wiring and receiving money. We say “abstract” as the operations seem to have less and less to do with a real physical bank. However, the truth is that without genuine banks the system regarding internet banking basically would not stand in truth. When one has an account with an online bank, this bank is in turn in communiqu with a bank on the sending end and the other on the receiving finish. Simple, yes?