Complex Systems with Patrick McKenzie (patio11) How Banks Actually Work (And Don't Work)
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Aug 14, 2025 Dive into the bewildering world of banking as the host unveils why these institutions seem to forget customer interactions, despite their prowess in tracking funds. Explore the tangled legacy systems and regulatory hurdles that contribute to Kafkaesque experiences. Discover how tiered support structures lead to operational inefficiencies and inconsistent treatment of clients, influenced by socioeconomic factors. Finally, ponder societal trade-offs in banking innovations and support models, revealing just how complex and multifaceted financial institutions really are.
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Ledgers Versus Institutional Memory
- Banks track ledgers very well but fail at tracking other truths about customers.
- This mismatch makes banks appear to lack object permanence when problems arise.
Fragile Interfaces Create Most Failures
- Bank cores connect to many subsystems that together cannot represent reality perfectly.
- Handovers between subsystems regularly drop cases and create the majority of operational issues.
Treat Ticketing As A Handoff Tool
- Use ticketing only to enforce responsibility handoffs, not to replace robust integrations.
- Recognize ticketing adds a new interface that must be integrated and monitored, not a cure-all.
