How about a single bank account for multiple currencies, gold and silver?
Though I am not an expert in
banking, I am wondering why we can’t have a common bank account for multiple
asset classes like different currencies, gold and silver. If possible, also stocks in
the same account? This may bring a lot of dormant wealth like gold and some
foreign currency lying in households into the banking system. This makes even
more sense in a country like India that is largest consumer of gold globally
where huge amount is converted from currency to gold and silver every year.
We may also allow an account
holder overdraw cash by automatically marking a lien on the gold or silver held in her
account. This way, loan against gold and silver may be automated for banked population.
This may provide flexibility to an account holder and safe lending for banks.
Rate of interest may vary based
on the asset class (cash, gold or silver) and currency, as part of business rules for the
account.
This may also encourage financial inclusion by providing depositors a choice of asset class they would like to open their account with, in addition to cash.
Technology today may be able to facilitate such a single account. All the business rules and checks and balances may be configured into the system to facilitate this new way of banking. From risk management perspective, a phased or gradual approach may be taken to implement this. Ability to offer this type of account could be a great way to differentiate for a bank over competition.
First step could be to add into a savings account what is there in the locker of a customer, with their consent. Not everyone keeps black money/wealth in a locker. Many use it for safety. I'll be happy to see in my bank-account-statement, what I have in a locker. It gives even more assurance about safety of our belongings when it is on record. Banks can then leverage this information to cross-sell other products to those customers with wealth locked in lockers.
Technology today may be able to facilitate such a single account. All the business rules and checks and balances may be configured into the system to facilitate this new way of banking. From risk management perspective, a phased or gradual approach may be taken to implement this. Ability to offer this type of account could be a great way to differentiate for a bank over competition.
First step could be to add into a savings account what is there in the locker of a customer, with their consent. Not everyone keeps black money/wealth in a locker. Many use it for safety. I'll be happy to see in my bank-account-statement, what I have in a locker. It gives even more assurance about safety of our belongings when it is on record. Banks can then leverage this information to cross-sell other products to those customers with wealth locked in lockers.
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