‘Disappearing’ Accounts and the Future of Payments

The legacy view of accounts—rigid holdings and lines of credit in financial silos—is yielding to the reality of open banking and interoperability, by which the walls around those accounts disappear and money movement becomes freer and more easily achieved. This, in turn, would open the door for aggregators to provide deep, holistic insight into consumers’ options at the point of sale, whether physically or digitally, and assess the most advantageous (to the consumer) payment vehicles and rails on a transaction-by-transaction basis. That idealized view of the future, however, runs up against some thorny problems in the here and now for all parties to transactions. 

This Javelin Strategy & Research report looks at the phenomena associated with “disappearing” accounts, driven by innovation and by changing financial language. It further examines the attendant opportunities for automated aggregation—with or without fiduciary responsibility—and the implications of implementing such technology for various players.

Key questions discussed in this report: 

• What is behind the notion of “disappearing” financial accounts?
• How could automated aggregation have an impact on how payment methods are chosen and transactions are initiated and settled on behalf of authenticated consumers?
• What are the effects on various parties to transactions?
• What extant technology is best positioned to provide this account aggregation?

Companies Mentioned: 

Affirm, Albert, BankMobile, Betterment, Branch, Chime, Current, Dave, Daylight, Empower, GoBank, Greendot, Marcus, MoneyLion, Monzo, NorthOne, Revolut, SoFi, Stash, Step, Target, Upgrade, Varo, Walmart