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Big Banks Lock Horns with Personal-Finance Web Portals

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Re: Big Banks Lock Horns with Personal-Finance Web Portals

#11

Post by snuxoll »

Someone1234 wrote: post #2

This is the major difference between the US and EU. In the EU this isn't the "bank's customer data" this is the "customer's data." The customer actually has a legal right to see what data is held about them by the bank, and the bank has a legal obligation to make sure that data is accurate and up to date.

The dumb part is banks are more than willing to support Quicken's Express Web Connect, which literally stores your username/password on Intuit's servers, logs into your online banking portal and downloads the .qfx files you would get if you did it by hand. This is the same company that owns Mint, and it's literally doing the same thing!

Oh well, until banks decide to stop allowing users to manually save .qfx files the worst they can do is make life inconvenient.

Re: Big Banks Lock Horns with Personal-Finance Web Portals

#12

Post by jburwell »

jacquesm wrote: post #7
xirdstl wrote: post #4

This seems like it would backfire. I suspect many people are more loyal to mint.com than to their banks.

Switching banks isn't easy, unfortunately. Note how banks have very successfully managed to create systems that do not have bank account number portability built in, they even engineered them in such a way that any future desire to implement such portability will meet with very substantial technical roadblocks.

Switching banks is complete PIA. However, services like Mint could eventually make it much easier to do. Today, they aggregate and analyze data across multiple across multiple accounts. As they start get into executing transactions, it will be become much easier for people to simply "repoint" transactions.

Re: Big Banks Lock Horns with Personal-Finance Web Portals

#13

Post by elahd »

bovermyer wrote: post #10
jacquesm wrote: post #7

Earlier quoted context omitted.

Switching banks isn't easy, unfortunately. Note how banks have very successfully managed to create systems that do not have bank account number portability built in, they even engineered them in such a way that any future desire to implement such portability will meet with very substantial technical roadblocks.

I think the biggest issue with switching banks is that that lowers the average age of your accounts, which affects your credit score.

That only applies to credit cards. Bank accounts don't even register on your credit report (overdraft lines may show up).

Re: Big Banks Lock Horns with Personal-Finance Web Portals

#14

Post by berberous »

bovermyer wrote: post #10
jacquesm wrote: post #7

Earlier quoted context omitted.

Switching banks isn't easy, unfortunately. Note how banks have very successfully managed to create systems that do not have bank account number portability built in, they even engineered them in such a way that any future desire to implement such portability will meet with very substantial technical roadblocks.

I think the biggest issue with switching banks is that that lowers the average age of your accounts, which affects your credit score.

Well, the age of your checking/savings does not matter. You could just leave your old credit card open and never use it (although this does creates some minor but annoying extra cognitive load).

Re: Big Banks Lock Horns with Personal-Finance Web Portals

#15

Post by icebraining »

Someone1234 wrote: post #2

This is the major difference between the US and EU. In the EU this isn't the "bank's customer data" this is the "customer's data." The customer actually has a legal right to see what data is held about them by the bank, and the bank has a legal obligation to make sure that data is accurate and up to date.

Well, while that's true, the bank isn't obligated to send it in a easily processable format; they could send you a pile of paper with the statements.

Re: Big Banks Lock Horns with Personal-Finance Web Portals

#16

Post by JoshTriplett »

Spooky23 wrote: post #9
jacquesm wrote: post #7

Earlier quoted context omitted.

Switching banks isn't easy, unfortunately. Note how banks have very successfully managed to create systems that do not have bank account number portability built in, they even engineered them in such a way that any future desire to implement such portability will meet with very substantial technical roadblocks.

Why not? I've ditched banks a few times. Checking is a commodity product these days... it's not like a banking relationship matters anymore. In olden times, it might have been a pain. Now most automatic payments hit a credit card, so you aggregate the account changes at that level. Last time I flipped to get a 1/4 point off my mortgage. I think I had to redirect my utility account and change a few online payment port…

> Why not? I've ditched banks a few times. Checking is a commodity product these days... it's not like a banking relationship matters anymore.

Depends on what position you're in, and how you've previously organized your finances. If you still write checks, you have to leave the old account open with enough funds and wait for all of those to clear. If you have things pointing at your bank debit/credit card, you need to change those and wait for any outstanding charges to clear. If you have direct deposit of a paycheck, you'd need to change that. And any services hooked up to your bank account via the usual "tell us the number of pennies we just transferred in and back out of your account" need re-hooking.

Re: Big Banks Lock Horns with Personal-Finance Web Portals

#17

Post by 7952 »

Banks are in a strange kind of transition. For years they acted like a retail operation that treated finance as a consumer product. But actually their purpose in the modern world is as infrastructure, more similar to electricity or water. In that sense their is some similarity to cable companies who are fighting to avoid becoming just a dumb pipe.

Re: Big Banks Lock Horns with Personal-Finance Web Portals

#18

Post by ssharp »

Spooky23 wrote: post #9
jacquesm wrote: post #7

Earlier quoted context omitted.

Switching banks isn't easy, unfortunately. Note how banks have very successfully managed to create systems that do not have bank account number portability built in, they even engineered them in such a way that any future desire to implement such portability will meet with very substantial technical roadblocks.

Why not? I've ditched banks a few times. Checking is a commodity product these days... it's not like a banking relationship matters anymore. In olden times, it might have been a pain. Now most automatic payments hit a credit card, so you aggregate the account changes at that level. Last time I flipped to get a 1/4 point off my mortgage. I think I had to redirect my utility account and change a few online payment port…

I used to occasionally game banks for their account sign-up bonuses. You quickly learn how to set up your accounts so that it takes minimal effort to switch to something else.

A few tips to stay nimble and cover your bases during bank changes:

1) Don't use any bill payment services

2) Any automatic payments you do online, set them up for your credit card if you can (I'd recommend this anyway to take advantage of rewards)

3) Keep a detailed list of where your bank accounts details are stored for auto or manual deposits and withdrawals so when it comes time to change accounts, you have a good checklist to follow.

3) Think about setting up a permanent "home base" account that you can transfer money in and out of from other banks. The idea is that you'll always have this account, so it can be used to pay bills, write checks, day-to-day, etc. and you just funnel your direct deposits from other banks into this one.

Re: Big Banks Lock Horns with Personal-Finance Web Portals

#19

Post by LordKano »

Spooky23 wrote: post #9
jacquesm wrote: post #7

Earlier quoted context omitted.

Switching banks isn't easy, unfortunately. Note how banks have very successfully managed to create systems that do not have bank account number portability built in, they even engineered them in such a way that any future desire to implement such portability will meet with very substantial technical roadblocks.

Why not? I've ditched banks a few times. Checking is a commodity product these days... it's not like a banking relationship matters anymore. In olden times, it might have been a pain. Now most automatic payments hit a credit card, so you aggregate the account changes at that level. Last time I flipped to get a 1/4 point off my mortgage. I think I had to redirect my utility account and change a few online payment port…

I have switched banks a couple of times too. In all cases, it has been because the bank took advantage of me when I made a mistake.

It has always been a variation on this same theme.

The last time I changed banks was in 2010.

I had made a mistake and I overdrew my account by $5 or so. That was obviously my fault and I should have been on the hook for one overdraft fee. My bank, reordered my transactions and caused me to incur 5 overdraft fees.

When I called in to complain, they "waived" two of them, leaving me to pay $90 when I should have only had to pay $30.

That was it for me. I opened an account at a Credit Union and left about $5 in the bank account so they'd have to keep paying to send me statements.

That went on for over a year until the bank implemented a $2/mo convenience fee for paper statements. In three months, my account was drained and the bank closed it.

People need to be willing to pick up and leave a bank if the relationship is no longer advantageous.

From the bank's perspective, it's always business and never personal. That's how you have to act in return.

Re: Big Banks Lock Horns with Personal-Finance Web Portals

#20

Post by toomuchtodo »

JoshTriplett wrote: post #16
Spooky23 wrote: post #9

Earlier quoted context omitted.

Why not? I've ditched banks a few times. Checking is a commodity product these days... it's not like a banking relationship matters anymore. In olden times, it might have been a pain. Now most automatic payments hit a credit card, so you aggregate the account changes at that level. Last time I flipped to get a 1/4 point off my mortgage. I think I had to redirect my utility account and change a few online payment port…

> Why not? I've ditched banks a few times. Checking is a commodity product these days... it's not like a banking relationship matters anymore. Depends on what position you're in, and how you've previously organized your finances. If you still write checks, you have to leave the old account open with enough funds and wait for all of those to clear. If you have things pointing at your bank debit/credit card, you need t…

* Write checks only when necessary. I usually use USPS money orders instead.

* Always have recurring payments on a credit card, which you pay off monthly.

Bill payments and connected accounts should be minor.

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