Salary accounts – Product Idea
Salary accounts are a painful deal. Every company seems to deal with a different bank. I guess it depends on how well the bank sold their product! Usually, only people like me are hit. For instance, I have 4 bank accounts from the 4 jobs I have had in my career so far. And its not like they are all good to have. The moment your account loses salary status, it becomes a regular savings account with a lock in of 10k per account. So I cannot use at least 30k of my money without paying a penalty! It doesn’t even sound right to say this. And am not alone. Oh, and closing an account with a bank in India is perhaps the most archaic procedures of all. Some even want written documentation presented at a certain branch! So much for being so advanced in developing IT solutions for the developed world!
Anyway, cribs aside. I really need a middleware company. This company has an account number that I can give as a salary account to my employer. Then I seamlessly(what am I smoking?) connect my savings account(s) to this company and set up percentages of my salary to go to these accounts. And all employers work with only one or two of these companies. The banks will now have to hard sell their accounts to customers. Let them loosen their purses and give us some benefits.
Where is the money? While I would pay for this service, I don’t think many others would. In India, life is a hack and nobody will pay a penny for these hacks. But the bank that gets integrated should pay a commission to this company. They better support this deal or they may not see too much money into their savings accounts. ( I clearly must be smoking something)!?
Ok, jokes apart, if someone with fintech expertise can look at this idea and say where the money is, I am sure it will benefit some people. Or at least banks will wake up to making things easy for its customers. Either way I win.