Unlike the grocery shop, a bank doesn\u2019t give the product and get the money right away. Bank may or may not get the money for its product at some point in the future. Possibility of default (i.e., time and uncertainty associated with time)changes the game. That\u2019s why a bank cares about whom to sell and prices its products differently for each customer to incorporate their default risk. This adds two additional points to the equation above: \u201cThe bank aims to sell the right product to the right person at the right price for that person, and it aims to sell it as much as possible to multiply profits.\u201dConsidering these two additional points above \u2014 selling to the right person and charging personal prices \u2014 your grocery shop around the corner actually does these from time to time. Once you go to the shop short on money and the shopkeeper says, \u201cNo worries, you can pay once you get the paycheck.\u201d (and it\u2019s not very uncommon in Turkey), he\u2019s actually giving you a micro-credit attached to his own products. Also, personal discounts are not uncommon in local grocery stores proving the fact that price varies among the neighbors. Hence, to a certain point, the shopkeeper also has to sell to the right person at the right price for that person.A couple of differences exist. First, the shopkeeper sells credit attached to her own products while the bank is providing cash with which you can buy anything. Second, the shopkeeper has to know you at a personal level or has to observe you well for a long time to be able to calculate your default risk, her reach is limited to her own network and eyesight while the bank has its eyes everywhere thanks to what we call data. That\u2019s why a\u2026<\/p>","protected":false},"excerpt":{"rendered":"
Unlike the grocery shop, a bank doesn\u2019t give the product and get the money right away. Bank may or may not get the money for its [\u2026]<\/span><\/p>","protected":false},"author":0,"featured_media":2796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/posts\/3486"}],"collection":[{"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/comments?post=3486"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/posts\/3486\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/media?parent=3486"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/categories?post=3486"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/tags?post=3486"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}