Give me one good reason why anyone needs a traditional bank!

Let's talk about why none of us really needs a traditional bank.

1. Today, most banks are really screwing their customers by paying near-zero interest on deposits, while the bank earns 5% or so on mortgages and car loans. That is a far greater spread for the bank than was the case historically. In contract, the larger/safer investment funds like Vanguard or Fidelity are paying about 5% on money markets and short-term bond funds. That's where most of our cash kitty needs to be.

The pure greed of the big banks is the reason why none of us should be using them. Otherwise, it's like we are masochistic and enjoy being abused. The banks do not treat us like customers--they treat us like resources to be stolen from.

2. First Republic Bank is down 50% today, as depositors pull out their money: On the one hand, the bank was greedy and got upside down on stupidly-unhedged long-term T-bill purchases--purchases which proved too risky as interest rates rose, and any high school economics student could've predicted it, yet somehow the professionals at the banks missed it, I think due to greed, as hedging isn't free.  

But on the other hand, the banks would be fine if it weren't for analysts instilling fear in depositors' minds, which caused them to withdraw their money, which then causes the bank to fail!  To be clear, it is only the misguided fear of depositors that causes bank failures. If they just let their money stay there, the bank would be fine.

3. Who would want to invest in something like a bank, when depositors can force the company to fail, whenever the depositors get fearful and do something stupid? Compared to, say, a utility or an oil company, which provides products/services needed by their customers, and where the customers can't really force the company into failure?

I ask again: Why do we even need banks? I don't think we can name one reason why we need a traditional bank. We can get online checking from non-traditional companies, and often that comes with FDIC insurance. And don't go thinking that FDIC will save you--the amount of protection is miniscule compared to total deposits. So I think it may make more sense to just diversify smaller amounts of your cash across several non-traditional banks.