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> simple […] unlimited I like how just explaining your concept makes it seems almost impossible in one word. Otherwise, from a bank perspective having a set o
by makeitdouble 5y ago
> simple […] unlimited
I like how just explaining your concept makes it seems almost impossible in one word.
Otherwise, from a bank perspective having a set of legal obligations for each account it handles feels like a nightmare. If you split your 10 billions into an infinitiy of smaller 1000s accounts, is it supposed to guarantee all of them if it goes under ? Does it report and audit each single account etc.
If these “accounts” are just a virtual partition of your money and all follow the same rule, why wouldn’t you just deal with them as separate entities in your excel sheets and let the bank have it as it is now ? If you have a clear business use (e.g. those are “wallets” for your customers) there are already banking entities providing these services, it’s a matter of paying them enough to work with you.
For non business accounts there are already clear cases where you would create new accounts (money that effectively needs to be under a separate ownership, or bound to a specific legislation, rule or currency), so it’s not like there currently is a limit on account creation, the friction added to create one is actually protecting the system from abuse.
- dkarp 5y agoMy bank offers this by giving you virtual accounts (called pots). They are, like you say, just partitions of the same account, but it is useful to have them in the bank as opposed to in a spreadsheet. Bills only come out of the bills pot, savings are fenced off from outgoings etc. Salary gets automatically sorted into the pots when received.
- deleted 5y ago[deleted]
- abecedarius 5y agoIn legacy finance, when you pay someone with a check or wire, they get your account number and from then on can debit more from your account anytime they want, restrained only because you can dispute it after the fact. The obvious, reasonable way to fix this is to create a new ID number for each payment. We have computers now. The friction you like here is doing the opposite of protecting the customer from abuse. (I think I've read about some banks offering this as a special feature.)
- Aeolun 5y agoYou can’t do this in any country that I know of. I need to explicitly allow people to debit money from my account.
- jefftk 5y agoYou can do this in the US. ACH only requires the numbers (account + routing) that are visible on every check we write.
- nightski 5y agoYes but if you are caught doing unauthorized ACH transfers it's not going to be good for you.
- ghaff 5y agoIn the case of monthly bills and related things, you authorize them once. Don't know what that looks like at the backend and what controls there are but utility companies and the like can absolutely debit money on an ongoing basis.
- abecedarius 5y agohttps://www-cs-faculty.stanford.edu/~knuth/news08.html https://www-cs-faculty.stanford.edu/~knuth/news08.html
- xyzzyz 5y ago> and from then on can debit more from your account anytime they want, restrained only because you can dispute it after the fact. They can, in the same sense that people can take stuff from your front yard if they feel like it.
- bko 5y agoI love how people, usually on the outside, think everything would be simple. The parent comment reminded me of the "I just learned about Bitcoin and I'm here to fix it."