As a regular user of BUNQ I am quite happy that they provide the regular banking services like credit card, payments and transfer of money, but also there is something else that really make me feel different from the other customers. 😊
I know for fact that my money is stored safely in one place. In another banks my money could be lent to ten different customers at the same time, and it is legal, it is called fractional reserve.
It is not that my money is lent, actually is worst, my money is used as a collateral to leverage the lending of ten times my deposit. If I were doing that, lending a money that I don't have it would be fraud, but when a bank does that it is called banking business.
Quite risky, and without my authorization, if I would be sharing the profit maybe I would consider, but as I am not, I prefer have my money safe and pay a monthly fee for the service. It is not only fair, but also ethical, more that any of those so called ethical banks. 😊
So my question for you is that, due to the fact that this is a great feature, no available in any other bank that I know, could you share more details about it. Such as legal documents that provide us more info about something that (sorry but sometimes sounds too good to be true)
Following I am attaching a document from recent studies about the 100% Reserve Banking