Imagine walking into a grand bank building with marble floors, high ceilings, and neatly dressed bankers eager to assist you. You deposit your hard-earned money, confident that it is safe and growing. But have you ever stopped to ask yourself—where is the bank? What role does it actually play in your financial future?

https://www.youtube.com/live/LFaf2iEnh94

This question is at the heart of today’s discussion on the Money Advantage podcast. It’s one that often comes up when people first learn about Infinite Banking. Where is the bank in Infinite Banking? How can you call it banking if there’s no traditional bank involved?

If you’ve ever wondered whether Infinite Banking is a legitimate financial strategy or if it’s just another buzzword in the financial world, we’re here to clear up the confusion. Let’s dive into what banking really is and how you can take control of it in your own life.

Challenging the Conventional View of BankingThe Truth About BankingWhy Do Banks Exist?The Three Core Functions of BankingWhere is the Bank in Infinite Banking?Why Infinite Banking Puts You in ControlBringing It All TogetherBook A Strategy Call

Challenging the Conventional View of Banking

Banking is more than a place—it’s a process. Understanding how money moves, who controls it, and who profits from it is the key to financial freedom. In this article, we’ll break down the fundamentals of banking, explain why Infinite Banking is not about replacing your local bank but rather about reclaiming control over the banking function in your life, and show you how you can apply these principles to build lasting wealth.

By the time you finish reading, you’ll understand:

Where is the bank in Infinite Banking?

Why banks exist and how they make money

The three core functions of banking that you can take control of

How you can mimic the banking function using whole life insurance

Why this approach provides more financial security, liquidity, and flexibility than traditional banking

Why this strategy can serve as a foundational pillar in long-term wealth creation

Let’s get started.

The Truth About Banking

Why Do Banks Exist?

To answer the question of: 'where is the bank', we must first understand why banks exist in the first place. Historically, banks were created as safe places to store money—often in the form of gold—so individuals wouldn’t have to worry about protecting it themselves. Over time, banks realized they could make money by lending out deposits at interest, and thus, the modern banking system was born.

Today, banks don’t just hold your money; they use it to make more money. They pay you a small interest rate on deposits while charging much higher interest rates on loans. This spread—the difference between what they pay and what they charge—is how banks make money.

But what if you could take control of this process yourself? What if you could become your own bank and keep those profits within your financial system? That’s where Infinite Banking comes in.

The problem with traditional banking is that it benefits financial institutions, not consumers. Every time you deposit money into a bank, you are allowing them to use your funds to generate revenue, while you receive minimal interest in return.

The Three Core Functions of Banking

To understand Infinite Banking, you need to first understand what banks actually do. Banks provide three key functions:

Facilitating Transactions: They allow money to move between people and businesses through checking accounts, debit cards, and payment processing.

Storing Capital: They provide a place to hold money safely (or at least, that’s what they want you to believe).

Providing Financing: They lend money and earn interest on those loans, which is their primary profit source.

The goal of becoming your own banker is not to replace the transactional role of banks—you’ll still use them for daily spending. Instead,