Thanks for the fine grain detail! For myself, merely explaining that "it is handled by an application on a cell phone, tablet, or personal computer" would have been sufficient. Personally, I resist adding "apps" ad infinitum to my personal processors as a big red flag. A side effect of a 30 year career in computer programming. Smacks of exposure risk for hacking, especially when it comes to financial transactions.
In the middle of a month in France and can echo so much of what you said. The ability to transfer money instantly to another's bank account is seamless here and that's the big difference. I read this past year, there is a proposal to do away with the (up to) five day wait for transfers in the U.S. which is the major impediment to using them right now. Transferring between U.S. banks (in my experience) is faster using a paper check for amounts less than $5000. One of my banks now does instantly credit me for any deposit via paper check or via an ACH withdrawal from another bank (USAA) but this seems to be an exception but perhaps an indicator of improvements to come.
Interesting to read of a different way of conducting financial transactions. Please spend a few moments describing the details. You tell us what isn't used, but not what is used. We are just poor ignorant Americans, with no exposure to advanced alternatives. I cannot conjure such a system. How is it done? Fingerprint scanning? Voice recognition? Seriously, what are they using on the other side of the pond?
My experience is with Switzerland and Spain. The banks I use/used in both have a security app that is separate from their banking app. I could opine why that is, but I'd just be making barely educated guesses. The security apps are used to authenticate a login, whether on the phone or web, and to authenticate transfers that meet or don't meet certain criteria. For example, sending money to a new receiver? Let's make sure you mean it. (There can be a bottom limit for this, like I don't care if it's less than CHF 100.) On the flipside, you can set a receiver as a trusted account, so no matter the value, no further confirmation is necessary. The security app replaced the old digital fobs, like RSA's SecurID. In Switzerland, before the security app was phone based, there was a separate card with a chip and reader that when combined, then required a PIN. That's the basic run down of the security. On bill paying, whether it's utilities or doctor's fee or SwissCycling registration or anything else, Swiss bills now have a QR code for the bank, beneficiary, amount, and reference information. For a new bill, your app will ask you to confirm the recipient and reference (as in your account with the receiver) etc are accurate if this is the first time paying. Then the transfer is the same day or immediate. In Spain, my bank charges something €0.20 for same day payment, otherwise it's free for the next day. They also ask confirmation if it's a new payee or I haven't set the payee as a "trusted" receiver. In no place is there an option to send a paper check since everyone has the ability to receive an electronic payment. It's just baked in / built-in to the system. Does that help?
Thanks for the fine grain detail! For myself, merely explaining that "it is handled by an application on a cell phone, tablet, or personal computer" would have been sufficient. Personally, I resist adding "apps" ad infinitum to my personal processors as a big red flag. A side effect of a 30 year career in computer programming. Smacks of exposure risk for hacking, especially when it comes to financial transactions.
In the middle of a month in France and can echo so much of what you said. The ability to transfer money instantly to another's bank account is seamless here and that's the big difference. I read this past year, there is a proposal to do away with the (up to) five day wait for transfers in the U.S. which is the major impediment to using them right now. Transferring between U.S. banks (in my experience) is faster using a paper check for amounts less than $5000. One of my banks now does instantly credit me for any deposit via paper check or via an ACH withdrawal from another bank (USAA) but this seems to be an exception but perhaps an indicator of improvements to come.
Interesting to read of a different way of conducting financial transactions. Please spend a few moments describing the details. You tell us what isn't used, but not what is used. We are just poor ignorant Americans, with no exposure to advanced alternatives. I cannot conjure such a system. How is it done? Fingerprint scanning? Voice recognition? Seriously, what are they using on the other side of the pond?
My experience is with Switzerland and Spain. The banks I use/used in both have a security app that is separate from their banking app. I could opine why that is, but I'd just be making barely educated guesses. The security apps are used to authenticate a login, whether on the phone or web, and to authenticate transfers that meet or don't meet certain criteria. For example, sending money to a new receiver? Let's make sure you mean it. (There can be a bottom limit for this, like I don't care if it's less than CHF 100.) On the flipside, you can set a receiver as a trusted account, so no matter the value, no further confirmation is necessary. The security app replaced the old digital fobs, like RSA's SecurID. In Switzerland, before the security app was phone based, there was a separate card with a chip and reader that when combined, then required a PIN. That's the basic run down of the security. On bill paying, whether it's utilities or doctor's fee or SwissCycling registration or anything else, Swiss bills now have a QR code for the bank, beneficiary, amount, and reference information. For a new bill, your app will ask you to confirm the recipient and reference (as in your account with the receiver) etc are accurate if this is the first time paying. Then the transfer is the same day or immediate. In Spain, my bank charges something €0.20 for same day payment, otherwise it's free for the next day. They also ask confirmation if it's a new payee or I haven't set the payee as a "trusted" receiver. In no place is there an option to send a paper check since everyone has the ability to receive an electronic payment. It's just baked in / built-in to the system. Does that help?
A very engaging column on a topic of perplexing quality of life issues in America. “Why?” Matt asks. Why, why why?
Welcome back Matt.