In our all-digital economy, only the computer knows

Bank Branch:  funnelinc.com

Branches Digitize the Cash

Vital Stats:

  • Total cash in bank vaults as of November 2007: $49.7 billion
  • Total cash in circulation: $1.4 trillion

What they do: Hold the cash; handle customer service. At all times, banking institutions must keep what's called a reserve requirement—the ready equivalent of part of what it owes the public at any given time (often $1 million or more)—under lock and key. New cash arrives daily by truck from the Federal Reserve, off-site vaults, other banks, and customers making deposits. But cash is more expensive to move and store than bits and bytes, so the bank digitizes transactions as early in the process as possible.

Security: What you'd expect—bulletproof glass, cameras, armed guard, thick vault door. Digital security is also important, however. When a teller calls up your account by contacting the core data center, security from that point on is entirely a matter of code. The message to the center is encrypted and is transmitted over secure lines owned or leased by the bank.

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5 Comments

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Everyone uses money. We all want it, work for it and think about it. If you don't know what money is, you are not like most humans. However, the task of defining what money is, where it comes from and what it's worth belongs to those who dedicate themselves to the discipline of economics. While the creation and growth of money seems somewhat intangible, money is the way we get the things we need and want. Here we look at the multifaceted characteristics of money. Some say it is the love of money that is the root of all evil. Others say that the only people, who believe that, are the ones who don't have any money. Regardless, it seems so much more important during a recession. More people are getting payday loans yet donations to foundations and charitable contributions have increased from some people. (Some no doubt in order to get a tax break, but hey – every little bit counts.) How do you feel about payday loans and money?



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