<story><title>Small Bank in Kansas Is a Financial Testing Ground</title><url>http://dealbook.nytimes.com/2014/12/13/small-bank-in-kansas-is-a-financial-testing-ground</url></story><parent_chain><item><author>davidw</author><text>&amp;gt; In the coming weeks, it is expecting to roll out what it refers to as a bank account of the future, which will make it possible to send wire payments and create customized debit cards online.&lt;p&gt;Or at least a bank account of a normal European bank. At least for the moving money part.  I can do that easily and with no fees here in Italy, which isn&amp;#x27;t the leading light of banking it was 600 years ago.&lt;p&gt;Hopefully that kind of thing will finally take off in the US.  I wonder what the difference is:&lt;p&gt;&amp;gt; But hastening the movement of money creates risk for banks, because it generally means less time to catch fraudulent transactions.&lt;p&gt;That&amp;#x27;s got to be a risk in Europe, too, no?  How is it dealt with differently?</text></item></parent_chain><comment><author>jacques_chester</author><text>&amp;gt; &lt;i&gt;How is it dealt with differently?&lt;/i&gt;&lt;p&gt;I can&amp;#x27;t speak for Europe. I once griped about the slowness of US banking to an Australian acquaintance who worked in banking technology in Australia and Britain. Here follows my half-remembered, probably inaccurate understanding.&lt;p&gt;In Australia, a bank has a very high confidence of that a transfer is going from real, physical person A to real, physical person B.&lt;p&gt;This is because of the &amp;quot;100 Point&amp;quot; identity check you need to perform when you open account. To open a bank account, you need to present multiple, independent forms of ID, including at least a driver&amp;#x27;s licence or a passport and some identification showing your current residential address.&lt;p&gt;It can absolutely be circumvented, but the bar for doing so is significantly higher than casual small-time fraudsters are interested in.&lt;p&gt;In the USA, I can find a small-town bank who will open my account without looking at me too closely, then start issuing dodgy cheques much more easily. In Australia, &lt;i&gt;no matter where I go&lt;/i&gt;, I will be required to prove that I am who I say I am. So the ability for banks or police to lay hands on me or my money is significantly strengthened, and consequently the rate of fraud is lower.&lt;p&gt;I see this also with online shopping. In Australia I never once, in my entire life, had a credit card purchase rejected. In the USA my Bank of America card regularly locks up and waits until I login to assure them that it hasn&amp;#x27;t been stolen.</text></comment>
<story><title>Small Bank in Kansas Is a Financial Testing Ground</title><url>http://dealbook.nytimes.com/2014/12/13/small-bank-in-kansas-is-a-financial-testing-ground</url></story><parent_chain><item><author>davidw</author><text>&amp;gt; In the coming weeks, it is expecting to roll out what it refers to as a bank account of the future, which will make it possible to send wire payments and create customized debit cards online.&lt;p&gt;Or at least a bank account of a normal European bank. At least for the moving money part.  I can do that easily and with no fees here in Italy, which isn&amp;#x27;t the leading light of banking it was 600 years ago.&lt;p&gt;Hopefully that kind of thing will finally take off in the US.  I wonder what the difference is:&lt;p&gt;&amp;gt; But hastening the movement of money creates risk for banks, because it generally means less time to catch fraudulent transactions.&lt;p&gt;That&amp;#x27;s got to be a risk in Europe, too, no?  How is it dealt with differently?</text></item></parent_chain><comment><author>maxerickson</author><text>I think most of the difference is in the legal frameworks and contracts. Most US electronic payments (ACH) can be disputed for quite some time after the initial transfer.</text></comment>