Proportional Direct Debit Payments from "connected" account


#1

Very excited to read the following:

"We believe there is a need for customers to manage some finances jointly, but we don’t think that the traditional joint account, separated from your personal finances, meets those needs anymore.

We want to make it possible for customers to connect their accounts to one another and create a virtual account that will allow them to better manage and contribute to their shared finances — whether that’s two partners, friends sharing a rented flat after moving to a new city, a family running their household or a circle of friends away travelling.

We’ll be looking to launch our ‘connected accounts’ towards the end of the year, so please get in touch if you would like to give us some feedback about how you effectively manage your shared finances."

With regards to using such an account it would be ideal if Direct Debits can be set up on the virtual account.

Paying proportions of rent / mortgage rent etc would be made much simpler if one could set a percentage contribution from each connected account.

Say rent is £700 pcm and a direct debit is set up on the virtual account for this amount.

Two accounts are members of this connected account.
1 member earns a third of the basic salary of the other.

Thus they agree to split the rent payments:

member 1 paying 66%
member 2 paying 33%

If with suitable permissions given by both parties a DD on the virtual account can be configured in this way, then the direct debit will be taken from the virtual account and the relevant proportions of the payment sources from member 1 and 2’s personal accounts, negating the need to transfer money around.

This is particularly useful when it comes to variable value direct debits where the amount may change on a monthly basis, i.e. utility payments.

Connected accounts should be able to have different settings for proportional payments on each DD agreement, with some or all funding coming from one or more connected accounts.

Any changes should be authorised by both parties.

Thoughts?


Deposits/shared costs shown in Pulse/Spending Insights
#2

I like this idea!

I would like to add that this should be configurable for Standing Orders as well (pretty much the same really).

Also you could have a “default split” (defaulting to 50/50) that are used by default on all new standing orders/direct debits and then having the option to override to say 30/70 split (or even 25/25/50 if a join account could be 3 or more people?!).
IF the default value is changed you could have it automatically update the dd/standing orders using the default maybe with an option to leave some on the old one with some kind of list of tick boxes.

:slight_smile:


#3

Great idea, looking forward to having this feature:slightly_smiling_face:


#4

To clarify…you have a default of 50 / 50 split.

4 DD’s set up with default

You change one to be 60 / 40.

You update your default split to be 80 / 20.

In this instance you would like the three DD’s set to default to update to 80 / 20?

I can’t say I’d be a fan of that. Not unless you have a prompt to select DD’s to update.

Maybe something like the following:

“You have 3 (LIST DD’s) DD’s configured to use this default value. Would you like to apply this default to these DD agreements? Members of this connected account will be prompted to authorise all changes.”

Checkboxes on the listed DD’s so you can group update, some / all.


#5

That’s exactly what I mean. Maybe my “with an option to leave some on
the old one with some kind of list of tick boxes” was a bit vauge but
that’s what was happening in my head! :stuck_out_tongue_winking_eye:


#6

Thanks everyone - this is great feedback. I’m certainly looking forward to connected accounts myself! I’ll pass these thoughts over to the team. :sunglasses:


#7

Thanks James!


#8

Hey guys,

Has there been anymore progress with this?? Just opened an account yesterday and so did my wife… We’ve traditionally had a joint account so this setup is slightly new for us but the “connected” account sounds like it might just work for us.

Have to say, first impressions are amazing!


#9

Not so far as I can tell.
This is what excited me about Starling but development on goals seems to have stopped half way and this a non starter