WYSIWYG Banking

WYSIWYG Banking

What the heck is WYSIWYG Banking? Why is it not possible to have a single bank account, that I can do all my banking with, without having to worry about transaction counts, and fees? This was the core of the presentation from Dan Dickinson of EQ Banks on the weekend, where they explained how their single account solution works (Tangerine also has a similar type of account), but this got me thinking about how (thanks to technology) banking has changed, yet, some “traditions” continue on (i.e. the Chequing Account, the Savings Account and the High Interest Savings Account).

Bank Fees and accounts should be WYSIWYG Banking

What are you seeing ?

What do I mean by WYSIWYG (pronounced “wiz-ee-wig”) ? In the 80’s the tech world wondered at text editors which were WYSIWYG, but in the 60’s we loved a song by the Dramatics of the same name:

What You See is What You Get

OK, so the Dramatics song is actually called Whatcha See is Whatcha Get, but you get my point. Having an editor that showed you what your final document might look like was a huge breakthrough.

What do I mean by this archaic technology phrase? Why is it that if someone talks about a new and exciting banking account it comes with about 30 disclosures/commentaries (usually in a very small font at the bottom of the page) (disclosure: I stole that line from the EQ Bank guy), how is this that much different from one of the standard accounts I have.

If I do more than 2 withdrawals or payment transactions on my HISA (High Interest Savings Account), I get dinged with a huge fee (I think it’s like $7.50), and my chequing account pays no interest whatsoever, but I keep asking why? Yes, in the days of ledgers, and paper records keeping this made sense (maybe), but now the record-keeping is all technology based, so why can’t I have a single bank account? Why must I have:

  • A chequing account, where I do most of my banking like paying bills, writing cheques, etc.,
  • A savings account (or a HISA) to put my rainy day money
  • An Emergency Account, that is a safe place to put money, but I can still get at quickly if there is a problem.
  • Not to mention all the registered savings accounts that I have.

It is starting to get to the point that I have as many bank accounts as I do log in IDs on the Internet (OK not that many but I have well over 10 different accounts, and that is only with 1 bank, I have other accounts at other banks).

Tangerine and EQ Bank look like they are trying to get to a single bank account (or WYSIWYG Banking), but they are not quite there yet.

Yes, this is a great song too!

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Old Financial Technology Habits Die Hard

For the longest of time, I refused to deposit cheques in the ATM machine (after reading horror stories about stolen cheques and the like, from nefarious false fronts which steal cheques), but after a while, I started using this technology (usually because the lines for the tellers were so long). I have written previously about not wanting to use my home WiFi (and absolutely never use public WiFi) for on-line banking, just because I am that kind of paranoid guy, but now I find myself doing most of my on-line banking using my laptop which is connected via WiFi (but not public WiFi).

ATM Machine

Old Technology?

Image courtesy of cooldesign, at FreeDigitalPhotos.net

Last night I caught myself in another one of my “still thinking like an old cranky guy” habits, and that was taking cheques with me to work, so that I could deposit them on the way home at the ATM machine at the bank. I dutifully went out of my way to stop at the bank, and deposited the cheques, but since TD has gone to a new ATM interface, it dawned on me, why wasn’t I just doing the “take a photo of the cheque” deposit method?

The TD ATM machine is simply photographing the cheque, and ‘parsing’ it (although they also keep the cheques, although I have no idea whether the darn things are archived or just shredded after a few days), the same methodology as if I was using my phone. Why didn’t I simply use my phone? My only explanation I can give is old habits die hard, and I keep forgetting about some features available from my bank.

I do still feel some paranoia, so I tend to photograph my cheques with WiFi turned off, and using my Cell Phone Providers network (which is marginally more secure), but I have to remember that the feature exists in the first place.

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Apple Pay and Interac Together

Is this a good thing is the question to be answered, but later on in this I will discuss that. I have written about Apple Pay and Near Field Communication (NFC) before, but now it seems to be really will be usable in Canada, with Interac announcing an agreement with Apple pay on using this technology.

NFC and Apple Pay

NFC an interesting idea?

Before you leave this page to go set this up remember there are a few limiting factors here:

  1. You need an iPhone 6 series (or above) or a later iPad series (although who would wander around with an iPad to buy things). The Apple Watch has Apple pay  also, but it ends up being “attached” to an iPhone as well.
  2. You need a bank account that you can access via Interac (figured I’d point that one out, just in case you were not sure).
  3. For the Interac part of Apple pay, you need to have an account with RBC or CIBC. CLANG!!! I knew there was going to be a catch.
  4. Apple Pay also works with Amex cards, ATB Mastercards and Canadian Tire Mastercards

OK, so the title is a little bit misleading, as only a few banks are covered here.

The real question, is NFC (Near Field Communication) a good thing? Depends on who you ask. If you read the link I supplied you will know:

NFC is a set of short-range wireless technologies, typically requiring a separation of 10 cm or less

Sounds perfectly safe, doesn’t it? PC World has a very good article about a few steps to take if you are going to use this technology (the reading the fine print and your agreement on use of the technology). The other thing to remember is if you are going to use this technology, your phone had better be secured (i.e. password locked, at least).

It will be interesting to see how well this whole thing works, now that it is more in general usage (in Canada).

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Fees and Penalties

Remember that great expression from your local video store

“Be Kind, Rewind”

Back then, some places even charged a penalty if you didn’t rewind your VHS tape. Interesting that this fee went away, but that is because the entire “VHS Rental” business disappeared. That sounds like a fairly sarcastic commentary, but how many fees disappear?

VHS Tape

I will bet there are readers who have never used one of these

  • My home telephone bill (yes I still have a land line) had a “Touch Tone” charge on it (up until July 2015), but if I tried to use a rotary phone I get nasty remarks from Bell, pointing out the technology really isn’t supported any more. The fee finally went away after Bell was shamed into removing it by the CBC.
  • How about that fun “paper charge” if you still got your bill mailed to you? Wasn’t that Green and cool? That went away (mostly) after the Government said they were not allowed. I actually can see why that charge was there.
  • Account fees for day-to-day banking continues at most major banks, even though many smaller banks offer free banking (PC Financial, Tangerine and others), yet we continue to pay for the services at major banks? Michael James has pointed out that eventually the Major Banks will take a dive and may finally stop charging these fees? Nah, never gonna happen.
  • On line trading fees started at $29.95 and it has dropped steadily since (and is around $9.95 or lower). Since I am pretty sure the trading houses are still making money on this, it does make me wonder how low could these fees go?
  • The airline industry seems to have completely built their profit structure around service fees, gas fees, take off fees, sitting in nice seat fees, not getting broken cookie fees, etc.,etc.,. and not many of those fees are going away. Aren’t they charging for carry on luggage now?

Are there any fees that may go away some time soon? I can’t think of many (maybe gas taxes once gas cars go away). Pretty sure overdraft fees will never go away.

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Michael James, inspired me to write another rant/commentary on the financial industry. He wrote about Mouths to Feed in the Financial Industry and it reminded me of a very funny monologue by Chris Rock: Bigger and Blacker (Amazon Link) about how Fathers don’t ask for much in life.

What does daddy get for his hard work? The big piece of chicken at dinner! My mamma would kill us if one of us ate the big piece of chicken by accident!

Daddy's piece of chicken

That is a BIG piece of Chicken

What does this have to do with the Financial System? Everybody in the financial system thinks they are Daddy, they all want the big piece of chicken.

  • Mutual Fund managers want you to pay the front-end, back-end and high MER fees because they are doing that much work to invest for you. That is a whole chicken, not just part of it.
  • Banks think they are the Daddy, just for taking care of your money. There are banks in Europe giving negative interest on your money (the money shrinks if you leave it in the bank).
  • Any Cell Phone Company (in Canada) is your Daddy, how much do you think their service really costs, but they are making sure you get quality service.
  • Internet Service Providers are plumbing, but they want a big piece of Chicken for the way they count your packets (and charge you if you use too many)

Let Daddy have that big financial piece of chicken? No way! They get enough, without taking the big piece of chicken too!

 Image courtesy of piyato. at FreeDigitalPhotos.net

 

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