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Overcoming the Shortcomings of Joint Account with – Building Smarter Banking and next layer of Financial Services on the top of Fintech.

Joint accounts, which are bank accounts shared by two or more people, are growing increasingly common.

Although offering benefits such as having all your financial information in one place, they also come with privacy and regional concerns. In this article, we explore how joint accounts work and how Nplone - N+1 overcomes some of their most pressing shortcomings through features like shared financial zones, multi-wallet banking, financial social networking, and more.

Content:

What is a Joint Account?

The Problem with Most Joint Account Solutions

The Solution through N+1

The Way Forward

What is a Joint Account?

A joint account is basically an account that you share with someone else. It can be used for all the things that normal bank accounts are used for, such as paying your bills, depositing money, saving up money as a long-term investment, or paying through installments.

In fact, they work almost identically to normal bank accounts in most regards, such as having a savings account or a chequing account for both their respective uses. This account can be shared with anyone, whether it is an acquaintance, close family member, business partner, or significant other.

The only difference ends up being that there are multiple owners of the same bank account, which can be considered a great feature for those who want to share their financial information, income details, and budget together. This also entails a certain level of trust, because one is capable of withdrawing money that they might not have added to the bank account.

It is essentially giving another person complete control over your financial life and, hence, must be considered with a note of caution. While most joint bank accounts have two owners, you can have more than two account holders. This is incredibly helpful if, for example, you also have children with whom you would like to manage your finances. While some banks tend to label a primary bank owner, usually all the owners of a joint bank account have access to the funds with the same level of control.

The Problem with Most Joint Account Solutions

In a scenario where someone breaks your trust, one of the owners can blindly splurge all of your money. The bank does not differentiate between different owners adding, withdrawing, or controlling funds within a joint bank account, which could lead to a substantial loss for other account holders.

When setting up your joint account, it is also worth asking about how your specific bank handles overdrafts, and how they are divided amongst the owners. Some banks may withdraw money from one’s personal accounts in order to pay for the overdraft. The same goes for the opposite, where some banks may choose to pay one’s personal account debts through their joint account if they have been left unpaid for a prolonged period of time.

Speaking of personal accounts, they can be very difficult to manage alongside one’s joint bank account. If one only has a joint bank account, they may face privacy issues as they would not want all of their transactions to be visible to someone else. The way the joint account system is structured, an owner may feel compelled to share financial secrets or feel the need to no longer communicate financial decisions and the reasoning behind them, which can be damaging to any partnership.

On the flip side, managing two accounts often means you always get an incomplete picture of your financial position, making you plough through several excel sheets just to know where you stand with your current finances.

Joint bank account solutions also severely limit your options in terms of banking, as all of the respective owners have to own a bank account in the same bank. This can be difficult for those who use multiple different banks for different purposes, or just people who would like to not use the same bank.

Furthermore, joint bank account services often operate in one country only, even if the joint bank account belongs to a neo bank. For example, Vivid, N26, Revolut, Tinkoff bank's clients can manage jointly finances only within the ecosystem of these banks. The owner of the N26 account cannot manage the finances jointly with the owners of Revolute or Vivid bank accounts. This is a major limitation for those who want to avail all the benefits of having several international off-shore bank accounts in different countries.

The Solution through N+1

N+1 removes the need for having a joint account in order to have shared fund management. One of our core features is the ability to create common cloud financial spaces for multi-wallet banking. This allows you to manage and conduct transactions across all of your accounts while still having access to all international banks and having a complete picture of finances for all participants inside the shared zone.

Regardless of where they may be residing within the EU, you can invite other people, as active participants, to your shared financial space, whether it is family or your colleagues. Moreover, you can invite people from all over the world as observers.

You are able to share specifically the transactions you would like across this network while being able to attach documents for legal proof such as Proof of Payment (PoP). You can contextualise your payments with your reasoning behind them, and how they helped you.

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We also give you full control over who gets to share financial information, with custom privacy settings for each of the members whom you invite into this curated space. Our capabilities aren’t just limited to splitting invoices but this vast network of financial information even allows for auctions, all within one application.

You might find yourself asking, how could nplone be secure? All of the data you submit into the service is encrypted and is never disclosed to anyone else without your confirmation. Only you have control over what information you want to disclose. Nplone cannot perform financial actions on its own, only through your bank and with your confirmation (using?multi-factor authentication - MFA?and?3-D secure authentication). Therefore the security level remains the same as it was before using N+1.

The Way Forward!

While having several benefits, joint accounts have become a difficult choice for most people due to the hassle of managing multiple accounts or the privacy concerns that come with using one account.

With N+1, we have created an innovative solution that lets you reap the benefits of shared fund management without any of the privacy-based compromises. As a pioneering technologies hub, N+1 rethinks traditional joint banking, financial management, and social networking to make it useful and simple to manage your finances with shared zones. Whether it is about paying joint bills or getting access to reliable financial information, N+1 is your ultimate solution for organising your financial assets with other people and consolidating the entire financial environment workflow. Publish and share transactions with others with N+1, the most innovative financial app on the market.

Explore the new approach with N+1 App:?https://nplone.com