I think you'll find that consumers care a lot about the lending side of the business. A lot of people have mortgages, lines of credit, personal loans and credit cards!

This comment made me think. Is the presence of lending an example of supply leading demand, rather than the other way around? I’ll have to read more on the history of the situation, but I don’t think anyone wants, e.g., a mortgage. They want a house and can’t afford it any other way.

In a system where mortgages didn’t exist, maybe houses would be more affordable for people.

I don't see why fractional reserve banking is the only way to lend.

It isn't but it's cheaper. People may not care very much about the 2% interest rates they get on their savings account, but I think they do care about having access to cheap credit.