Hi guys it's mark so check this out. Unfortunately, we will no longer be able to offer you banking facilities, nor will we choose to at any later date. Basically, this is a very polite way of saying. I'm no longer welcome and i have to move my money elsewhere and it's not just me.

This is happening everywhere. The banks have never been very honest with us and it's no surprise. Our faith in them is at an all-time low, as they're responsible for the ever increasing debt levels and a complete structural collapse in 2008, leading to the worst financial crisis in human history. This is the national debt clock currently sitting at 30 trillion when household debt is added.

On top of this, it's more than 50 trillion dollars. This means, if everyone tried to pay off their debts, there simply wouldn't be enough cash in the world, so this bench might not look very remarkable, but it spawned the entire banking industry. As we know it today, not this particular bench but benches. In general, you see as early as the 1400s people use benches to trade their crops.

The italian word for bench is banco, which is why we call it a bank today, so the beginning of the bank was a humble bench. So how did it go from this? To this i think we're missing something when things like this happen, i always feel compelled to get to the bottom of it, especially in this case, as almost everyone has a bank account. Honestly, i never expected where this research would take me from the emergence of the banking system and the truth behind how they create wealth from thin air to the new technology posed to disrupt the entire industry. So, throughout the years the most influential companies of each generation have been in different fields.

At the moment, six out of the top 10 companies in the world are in the tech sector. However, as these industries shift in popularity, one thing remains constant. The banking system i mean back in my day, more than 200 companies were racing to create the best cars, but only a few of them went on to succeed. This just shows that the dominant industries are always shifting.

However, it doesn't matter what companies are at the top of the list, as the banks are always there to support and accommodate their financial needs. But how do the banks consistently manage to stay at the top grow their power over the years and build bigger and bigger skyscrapers to uncover this? We need to look into the three heavily debated theories of banking, so that we can discover where all this money is coming from. Trust me, the last one is crazy theory number one is that the banks are financial intermediaries. This is the belief that we put our money into the banks and in return they pay us an interest rate.

Let's save one percent. After doing extensive background checks, they then lend that money out and ask for an interest rate in return, for example, six percent. This then allows them to profit five percent from being the middle man, that's how most people think the bank operates, and it sounds pretty reasonable to me. This is because, if all our money is held in the bank falls, it can't be loaned out to businesses, fueling products and services for us all to enjoy.

However, this doesn't explain how they're making the astronomical profits to build skyscrapers and be some of the biggest businesses on the planet. If this was true, they should be just glorified accountants. So that brings us on to the fractional reserve theory. This states that a portion of the cash reserves are held at a master bank, otherwise known as the central bank.

This frees banks to lend out the rest of the money in order to continually stimulate the money supply within our economy and also have enough money to service our withdrawals. Now this would make sense, but it doesn't explain how banking has become so lucrative enter the credit creation theory. This suggests that lending money has nothing to do with customer deposits. Banks are actually creating new money out of nothing they're effectively, magicians.

The best way to explain this is to imagine you're, taking out a loan for two hundred thousand dollars to buy a house you'd go to the bank and ask them for a mortgage, provided you pass the necessary checks. They present you with a debt contract to sign once you've signed that loan agreement you've created an iou note. The bank is in the business of buying these promise notes, as this is a type of security, so they purchase this contract from you at the price of the loan, and the money later appears in your bank account. Now.

The big debate here is: where does that money come from? Well, an economist named richard werner had the same question. He gained access to the bank systems and did an experiment. The aim of this test was to monitor where exactly the money was coming from. Not surprisingly, it didn't come from bank deposits, nor did it come from reserves.

It effectively just appeared from thin air, backed by only the promise of an iou note, and he states. This is where 97 of money comes from, although all of these theories are heavily debated amongst different economists. The credit creation theory would explain how banks went from humble benches to stupendous skyscrapers, but there's a new kid on the block that could be about to tear down their ivory towers and poison their money tree fintech in text fintech, the fintech revolution fintech, is short for Financial technology banks are being disrupted and fintech is considered by many to be the future. In fact, the top 50 fintech companies in europe have raised over 16.8 billion dollars in venture capital funding and are valued collectively at over 92 billion dollars.

There's no denying that traditional banks are being caught up and, although fintech isn't currently the market leader, people are embracing it more and more. A great example of this is public.com, who have a great app that helps. People become better investors with an entire community of notable investors to learn from they even give you a free stock slice worth between three and a thousand dollars. When you sign up, if you'd like to pick that up i'll leave a link below.

But why would something like fintech scare, the bankers that have been in power for centuries? Well, there are three super powers that fintech companies have which are helping them take over the first one is their business model. The world of business and finance has been heavily shrouded in mystery for years. When i first entered the investing world, i didn't know what half the people were talking about. They used complicated terms that locked out the everyday person.

However, the aim of technology is the opposite: take apple, for example, they knew in order to innovate, the telecommunications industry. They had to make technology easy and simple to use, i mean even my dad can use an ipad that just shows how simple technology has become. Fintech is groundbreaking, customer focus and makes complex financial terminology easy and accessible to a wider population. The nature of technology also allows them to adapt quickly to the market and provide different financial products that are in demand, such as companies, creating bitcoin reward credit cards.

The traditional banking industry just can't keep up as they're shackled by their current business models. The second superpower is their growth potential. The pandemic arguably fast forwarded us five years into the future, as we had to rely on technology more than ever before. This meant that people weren't going to their traditional bank branches on the high street and were instead increasingly turned into the internet.

Some may have thought that this was just a fad. However, the data proves that fintech companies haven't slowed down dramatically in growth and they're. Certainly, here to stay now that more people are familiar with their technology. The third superpower is the more relaxed regulations that allow fintech businesses to move more freely.

This is because technology moves faster than regulation and lawmakers are always on the back foot, because traditional banks have been doing the same thing for decades. They are bound by strict regulations that they have to adhere to. So we can clearly see that fintech have the upper hand against the traditional banks, but when i say fintech, it's such a wide general term that could apply to many different apps and services. I think one of the most exciting and also dangerous competitors to banks is decentralized finance, otherwise known as d5.

Imagine a world where you could take out a loan in seconds with no bankers, no buildings, no votes, no cash, no forms and no credit ratings involved. Well, that's what dao's would allow you to do. Logan paul has recently incorporated this idea in his 99 originals nft project. The basic concept is: a load of people, buy the nfts and in logan's case half the money goes to him and the other half goes into the dow.

The holders of the nfts are then able to vote on how the money inside the dow is used. It's effectively a bank on this note i happen to know a guy called simon squibb, who recently trademarked the term metaverse bank and is planning big things in the space. The banking industry has never faced competition. This fierce before and in all honesty, they're scared.

Just imagine if everyone starts turning to fintechs instead of signing iou agreements with the banks, they'd definitely be in trouble. That's for sure that brings me back to this letter. If i'm being completely honest after doing all this research, i'm more than 99 confident that the bank closed my account for investing in the crypto space. So, instead of writing a long letter to the bank explaining why they're wrong i'm going to share my response here so that if the banks don't listen, it can at least help some of you that are interested in investing in new sectors and also the problems that Come with it dear banks, it's evident that you tried to kill, crypto and failed.

However, this is a case of adapt or die. I know from your history. You've been in the business for hundreds of years. However, we, your customers, are adapting at a faster rate than ever before, and you need to keep up with us.

Your power may be fading, which is causing you to scramble to regain control with letters like this. However, there is a better way. A win-win situation for both fintech and crypto is to form partnerships that combine innovation with the traditional banking model that allow us to go into a digital future. Together, thomas olsen, a partner at bain and company recently stated.

Most people agree that in the future it might be 10 or 20 years or might be even sooner effectively, all assets are going to be in a digital format. I've been buying my crypto on the ftx app as the fees are 85 lower than the nearest competitors, and you get free crypto on every trade over ten dollars. When you use the code mark tilbury i'll leave that link down below. If you want to check it out, the harsh truth is banks are unlikely to survive the fintech challenge as we, the customers are becoming more financially literate by the minute.

Therefore, trying to silence this financial revolution is only losing new customers and prolonging the inevitable. So i'm going to leave the next video right up there, but don't click on it just yet make sure to subscribe. If you want to grow your wealth, okay, i'll see you over there.