The system that I am going to focus on is one I discussed with a classmate, the banking system. This system seems to be very straight forward in the eyes of most of its users, but behind the scenes involves a completely different process and steps. To the average bank user, you would just stop at the bank, hand them your signed paycheck and either deposit it into your account or get the cash in your hand before you walk out the door. Also, it is very easy to sign up to make an account at the bank. All they need is some of your personal information and then you are set to get an ATM or debit card and keep all your money in a secure account. Although this process seems very easy, there are many things that go on behind the scenes. Some of these things include loading all banks and ATMs with cash, creating, and giving out loans, starting credit card accounts, and protecting everyone’s money within the bank. This system basically works by you starting an account, and all the money you make and bring to the bank can either be distributed into your account out of the employers account or you can receive the money in cash form. Also, there is a debit card that is attached to your name and account and you can swipe the card at stores and restaurants to pay for things and that money comes directly out of your account. A credit card allows you a certain amount of money to be spent each month, usually 1,000 dollars, and then you pay it off using the money in your account.
One downfall that I have experienced from the banking system firsthand is the process in receiving a car loan. My first car that I bought with my family was paid off monthly over four years. Each month I would pay my mother the money and then she would have the money take on out of her account. Recently, last December, I decided I wanted to buy a pick-up truck as it is more practical for my work during the summer and for hunting reasons. Although, when I found the truck, I wanted and started on the loan process, but I was denied by the bank because I have never had a car payment on my own before. I find it confusing on how I will ever be able to get a car loan if I don’t start somewhere. The alternative to this was me having to place my mother’s name on the loan and her be my cosigner. This way I can still build up my credit and hopefully be able to get my own loan on my next vehicle.
The next example I have is on that my grandfather shared with me. Throughout his life, he has relied solely on having cash at hand. In my opinion, that is not a bad thing as you always know where your money is and it is in your control. Although, over the summer he tried to go to the bank and opening a credit card account and was denied and told that he will probably never have good enough credit to get one since he has never had one before. I believe that is a big unrealistic because he has proved he can pay for everything he needs and is debt free, yet he can’t get a credit card.
The last thing that comes to mind when I think about the banking system is the security that protects it. I believe the bank security is one of the finest as everything is protected inside of safes with locks and all accounts have multi step processes to get in, some including pins, birthdates, names, pet’s names, and even social security numbers. Through all the safety measures surrounding the banking system, I believe it is very protected from robberies and other forms of hacking from outside sources.
The system that I am going to focus on is one I discussed with a classmate, the banking system. This system seems to be very straight forward in the eyes of most of its users, but behind the scenes involves a completely different process and steps. To the average bank user, you would just stop at the bank, hand them your signed paycheck and either deposit it into your account or get the cash in your hand before you walk out the door. Also, it is very easy to sign up to make an account at the bank. All they need is some of your personal information and then you are set to get an ATM or debit card and keep all your money in a secure account. Although this process seems very easy, there are many things that go on behind the scenes. Some of these things include loading all banks and ATMs with cash, creating, and giving out loans, starting credit card accounts, and protecting everyone’s money within the bank. This system basically works by you starting an account, and all the money you make and bring to the bank can either be distributed into your account out of the employers account or you can receive the money in cash form. Also, there is a debit card that is attached to your name and account and you can swipe the card at stores and restaurants to pay for things and that money comes directly out of your account. A credit card allows you a certain amount of money to be spent each month, usually 1,000 dollars, and then you pay it off using the money in your account.
One downfall that I have experienced from the banking system firsthand is the process in receiving a car loan. My first car that I bought with my family was paid off monthly over four years. Each month I would pay my mother the money and then she would have the money take on out of her account. Recently, last December, I decided I wanted to buy a pick-up truck as it is more practical for my work during the summer and for hunting reasons. Although, when I found the truck, I wanted and started on the loan process, but I was denied by the bank because I have never had a car payment on my own before. I find it confusing on how I will ever be able to get a car loan if I don’t start somewhere. The alternative to this was me having to place my mother’s name on the loan and her be my cosigner. This way I can still build up my credit and hopefully be able to get my own loan on my next vehicle.
The next example I have is on that my grandfather shared with me. Throughout his life, he has relied solely on having cash at hand. In my opinion, that is not a bad thing as you always know where your money is and it is in your control. Although, over the summer he tried to go to the bank and opening a credit card account and was denied and told that he will probably never have good enough credit to get one since he has never had one before. I believe that is a big unrealistic because he has proved he can pay for everything he needs and is debt free, yet he can’t get a credit card.
The last thing that comes to mind when I think about the banking system is the security that protects it. I believe the bank security is one of the finest as everything is protected inside of safes with locks and all accounts have multi step processes to get in, some including pins, birthdates, names, pet’s names, and even social security numbers. Through all the safety measures surrounding the banking system, I believe it is very protected from robberies and other forms of hacking from outside sources.
Photo used under Creative Commons from wuestenigel