

Why is the US banking system so far behind? - dodders
http://www.marketplace.org/topics/world/why-our-banking-system-so-far-behind

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Broken_Hippo
I agree with the article - the reason the US banks are behind is because the
banks haven't been required to do proper upgrades. Consumers rarely have the
power to change things in this situation: The pressure would either need to
come from the government or it would have to come from a partner company -
something along the lines of Visa or paypal or the like.

I will say that the system in Europe seems much more secure: additionally at
least here in Norway people do give out their bank account number to others -
which was shocking to me as an american at first, but truly is simply more
telling about the low risk level in doing so. The other person wouldn't be
able to do anything but deposit money with the bank account number, rendering
transactions safer.

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pzxc
I disagree completely - the reason the US banks are behind is because the
heavily-regulated environment they operate in means they are not subject to
free market competition, and they have no incentive to capitalize (pay for)
proper upgrades when they don't have any competition that will take away their
market share if they don't.

It's the same reason our internet speeds are subpar compared to the rest of
the world -- when you have government-enforced monopoly status, you are going
to lag behind the free market. Make it easier for new ISPs to enter the
market, and you will see AT&T and Comcast all of a sudden deciding it's worth
it to offer a better product. Make it easier for new banks to enter the
market, and you will see Bank of America etc all of a sudden deciding it's
worth it to offer a better product.

When people see a market that isn't operating efficiently, and then proclaim
"Well the reason this inefficiency exists is because the government hasn't
forced them to be efficient!", that is personally very frustrating to me.

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sharemywin
So Sweden is free market leader in banking?

