A bank is a licensed institution that collects deposits, distributes loans, and provides means of payment. These three activities form the foundation of any banking institution, whether it is a large universal bank or an online player. Understanding their interplay allows for a better assessment of the services offered and the fees charged.
Transformation of deposits into loans: the central mechanism of banks
The operation of a bank is based on a principle called financial intermediation. The funds deposited in current accounts and savings accounts do not remain in a vault. The bank uses them to grant loans to other clients, individuals or businesses.
The difference between the interest rate charged on loans and that paid to savers constitutes the intermediation margin. This is the primary source of income for a retail bank.
This mechanism involves a risk: if too many depositors withdraw their money simultaneously, the bank may run out of liquidity. To limit this risk, regulations impose prudential ratios. Each institution must keep a fraction of its deposits in reserve with the central bank and comply with capital requirements set by European authorities.
To delve deeper into the workings of different types of institutions and compare their offerings, the Take The Capital banking site details the characteristics of each banking model.
Banking services for individuals: account, payment, savings
The services offered to individuals are divided into three distinct functional categories.
Account management and means of payment
The current account is the entry point of the banking relationship. It allows for receiving income, paying expenses, and setting up direct debits. The associated means of payment (bank card, transfer, check) are governed by European standards that ensure interoperability between institutions.
Instant transfers, widespread in the euro area, have changed habits. A transfer arrives in a few seconds in the recipient’s account, even between two different banks.
Regulated and free savings products
Banks offer savings products with conditions set by the State (Livret A, LDDS) and investments for which they determine the remuneration themselves (term accounts, life insurance in units of account). Regulated savings offer capital guarantees and reduced taxation, but with capped returns.
Loans to individuals
Mortgage loans and consumer credit represent the other side of the relationship. The granting of a loan depends on repayment capacity, debt ratio, and provided guarantees. In France, the banking model finances the majority of the economy through credit rather than financial markets, which gives banks a structuring role in financing households and businesses.
Bank fees: what is increasing and why
Bank fees are not fixed. According to the 15th annual report of the Banking Tariffs Observatory, the prices of banking services increased by 2.7% between February 2025 and February 2026, while general inflation during the same period was only 0.9%.
This increase can be explained by several factors:
- Investment in digital infrastructure (mobile applications, security systems, regulatory compliance) generates costs that banks pass on to their pricing schedules.
- The gradual closure of physical branches does not offset these technological expenses, as maintaining a residual network remains costly compared to the volume of clients who visit it.
- The new European regulatory obligations, including the CRD VI directive published in June 2024, impose additional compliance requirements on institutions.
For the client, carefully reading the annual pricing brochure remains the most reliable way to anticipate the evolution of their fees. Banks are required to communicate it each year.
Security of banking operations and fraud by manipulation
Security is a major issue in the banking system. Banking fraud reached 1.24 billion euros in 2025, with a notable increase in manipulation scams. The most common scenario: a scammer poses as a bank advisor via phone or SMS and convinces the victim to validate fraudulent transactions themselves.
This type of fraud, known as “fake advisor” fraud, surged by 34% in one year. The peculiarity of this technique is that it circumvents strong authentication measures, as it is the client themselves who validates the transactions.
Banks deploy real-time detection systems, but prevention also relies on simple reflexes:
- A bank advisor never asks for a validation code received via SMS.
- In case of doubt, hang up and call the official number of your bank, displayed on the account statement or app.
- No urgent operation justifies bypassing the usual verification procedures.
CRD VI directive and access to banking services outside the European Union
The CRD VI directive, published in the Official Journal of the EU on June 19, 2024, modifies the rules for accessing international banking services. A bank located outside the European Union must now open a licensed branch in the relevant member state to offer deposit, credit, or guarantee services to European residents.
Two exceptions exist. A grandfathering clause allows contracts concluded before July 11, 2026, to be maintained without the creation of a branch. Reverse solicitation allows a European client to contact a foreign bank themselves to obtain a service.
This development directly affects expatriates and businesses working with banking partners outside the euro area. Accounts opened with non-European institutions that do not create a branch could become inaccessible for certain operations after the deadline.
The French banking system remains structured around the universal model, where the same group covers retail banking, asset management, and investment banking. This concentration facilitates access to services for clients but makes regular comparison of offers and fees between institutions all the more useful.
