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Long gone are the days when banks were a community space, where the tellers knew your name and would help your family with short-term loans on a handshake. In the 1970's and 1980's personal loan to pay stamp duty were deregulated and they began merging with other institutions and creating financial products to make money from their customers.
Prior to deregulation, or the gradual repeal of Glass-Steagall, banks would only collect on the interest paid on loans. Now, they have partnered with insurance companies and other financial institutions and have grown into enormous corporations. They have moved away from the small community bank, thus moving away from their customers. They have lost their personal relationships and found new ways to make money.
Banks have created financial products, such as overdraft protection, so they can charge fees for the service.
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