The world of modern banking is full of surprises, and some aspects may be more complicated and interesting than you think. For example, many customers don’t realize that their bank deposits are not stored in vaults but are actually used by the bank to issue loans to other customers. This process, known as fractional reserve banking, allows banks to lend out money they don’t physically hold while maintaining liquidity. Additionally, the rise of neobanks—entirely digital banks with no physical branches—has completely redefined how financial services are delivered, offering low fees, high-interest savings accounts, and innovative features like AI-powered financial advice.

Another fascinating fact is how banks are increasingly adopting blockchain technology to improve security, transparency, and speed in transactions. Blockchain, which is most commonly associated with cryptocurrencies, is now being used by banks to verify transactions and reduce fraud in international payments. Moreover, modern banks are increasingly adopting AI and machine learning to offer personalized customer service and predictive banking services, such as alerting you about potential overdrafts or suggesting financial products based on your behavior.