The stout black haired barrista at the crammed coffee shop was clearly tired. He fussed with his green apron sending the day’s danish flakes to the floor. His replacement crew for the late-night rush left him to rot in a bit of overtime and his mug smiled uselessly. We had gathered there for the free wireless and nice tables. I imagine Cole asking him for the cut without his usual attention to detail.

“How’s it going, dude? May I have the large piece of gingerbread?”

Empire Wall, 2005 by Max Toth

Cole points to a dark rectanglish cube while leaning against the glass case. Reaching in, the green-aproned college student picks one out with a translucent paper, gives it a glance, and then proceeds to exchange it for a smaller cut. He hands this to Cole.

“‘Ere ya go, dude.”

♦    ♦    ♦    

Bank of America stops accepting deposits at 4:00 pm, no matter what, because this cutoff is a good source of fee revenue. Paypal allows deposit without this cutoff. This 4:00 pm closing time should be maintained because the bank buildings should be staffed during humane work hours. Mutual funds must also be calculated at 4:00 pm to ensure proper valuation. But, accounts could clearly be managed after 4:00 pm securely and efficiently by computers, which need not be treated humanely, allowing customers appropriate access for the current Just In Time economy.

By offering online banking the relationship between building and bank account dissolves.

It is still necessary to find an ATM or drive-thru teller to make bank deposits. But if Paypal effortlessly handles deposits instantly, why can’t the computing infrastructure of the second largest bank in the US cover a deposit after 4:00 pm?

Indeed, if Paypal-to-checking transfers happened instantly, instead of the current 3-4 business day waiting period, a new breed of direct deposit based business could emerge. These instant transfers increase the potential for fraud, so change in this area requires the public adoption of better open identity standards, employee education and personal encryption.

Kit, 2005 by Max Toth

Nominal fee for all the time access

For a small $1.00 ATM withdrawal fee, Paypal gives you 24-hour access to your deposited funds. You can bet that if local utility companies and the home rental market open up their business to payments from internet-based banks such as Paypal, the 4:00 pm deposit cutoff will not remain competitive. With bankers celebrating the Check Clearing for a 21st Centrury’s one year anniversary this month, why is Bank of America still stuck in the 20th?

Without my bank building’s hour-long session with the assistant manager, who needed me to log into my online banking account to get to last month’s account history that their internal system couldn’t access (why couldn’t your building do that, again?) in order to resolve a mistaken $10 fee, are you sure Bank of America would be able to find the money to acquire a 9% stake in China’s Construction Bank? But then again, I’m a much smaller piece of gingerbread, what would I know?

related

• Paypal Sucks for a bit of balance.
• Marketplace’s discussion of New York Stock Exchange’s merger to allow real-time trades
• The Stalwart’s coverage of Mobile Banking in Africa
• SEC filing against Charles Schwab for mutual fund services after 4:00 pm

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Wednesday, October 26th, 2005 at 4:28 pm

topic: personal