> For the complete documentation index, see [llms.txt](https://docs.stakestone.io/stakestone/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.stakestone.io/stakestone/stakestone-2.0-crypto-native-neo-bank/a-deep-dive-into-traditional-banking/an-expensive-system-by-design.md). # An Expensive System by Design The traditional banking system wasn’t built to be lean. Banks shoulder hefty operational expenses across IT infrastructure, compliance, staffing and branch networks, and the complex coordination costs of upstream and downstream industry chains. These costs ripple through the entire system, leading to two main challenges: #### The Unbanked and Underbanked Even in 2024, 21% of adults worldwide have no bank account. Many banks require minimum deposits just to break even on operational costs, effectively shutting out lower-income users. And for those who do have accounts, as many as 30–60% are underbanked, unable to access loans, remittances, or investment services without turning to alternative financial services.*(Source:* [*Lucidity Insights*](https://lucidityinsights.com/infobytes/over-34ths-of-adults-remain-unbanked-or-underbanked?utm_source=chatgpt.com)*)* #### Friction Costs: A Hidden Drain on Profits In today’s banking landscape, every financial transaction carries a hidden layer of friction. Because each bank operates as a separate entity with limited mutual trust, funds must often pass through third-party clearinghouses to reach their destination. While this structure helps ensure security, it introduces complex and layered fee mechanisms. Businesses must absorb fixed fees, percentage charges, and intermediary costs, as well as hidden foreign-exchange losses.\ This is especially pronounced in cross-border payments, where currency conversion fees, bank processing charges, and card network fees stack on top of each other. The result is an opaque and unpredictable cost structure that makes accurate forecasting difficult and gradually eats into corporate margins, becoming a significant barrier to global business growth. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.stakestone.io/stakestone/stakestone-2.0-crypto-native-neo-bank/a-deep-dive-into-traditional-banking/an-expensive-system-by-design.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.