Banking Transformed with Jim Marous Why Today’s Banking System is Failing Consumers
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Dec 23, 2025 Join Tarun Ramadurai, a professor of financial economics and co-author of the book Fixed, as he unpacks the hidden pitfalls of today's banking system. He reveals how personal finance is skewed to favor the wealthy and educated, leaving many consumers disadvantaged. Tarun discusses the complexity that profits financial institutions and the emotional toll it takes on consumers. Explore how technology could both help and harm, along with practical solutions to restore trust and fairness in finance.
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System Built For The Sophisticated Few
- The financial system is optimized to benefit the most educated and wealthy, not the average consumer.
- Complexity and deliberate friction shift wealth from the many to the few.
Rewards Paid By Others' Mistakes
- Tarun gives credit card rewards and late-fee dynamics as a redistribution from uninformed to informed consumers.
- He also cites mortgage refinancing mistakes that lower average rates for informed borrowers.
Markets Reward Mistaken Demand
- Human intuition and intermittent, emotional decision-making cause repeated financial mistakes.
- Financial firms compete to serve consumers' mistaken demands, not their true long-term interests.
