Virtual Pots


(Aaron Price) #1

I don’t know if this has been suggested before, but a search for “virtual pots” on the fourms seems to be more synonymous with a ringfence of cash i.e. I will reserve x amount to pay my bills. Ringfencing can easily be implemented now IFTTT is live (pull ringfenced cash into pot after payday, send it back to the account on paydate).

Anyway, I’m using “virtual” in the far more literal since in that they will represent a financial position (i.e. a balance with a 3rd party) in the real world and Monzo will not hold the cash.

The pot will be linked to a payee (with a set reference), so any payment to this pot will initiate a payment in the real world.

There will be 2 Different types of balance:
*Manual
*Automatic (i.e. from an API)

And an pot can be either:
*Withdrawable (auto balance only)
*Non-withdrawable

Withdrawable could use either a PayPal style DD on the account or just a card linked to the account

Examples

  1. Manual balance pot (credit)

I owe KwikFit £1000 which I need to pay back over a number of months.

I set up a manual pot in a credit position of £1000 (or maybe a target of £1000) with my invoice number as a reference, linked to KwikFit as a payee.

Everytime I put money in that pot, it decreases (or increases if using targets) the balance and sends a payment to KwikFit

Withrawals are not allowed.

Balance can be updated at anytime e.g if a cash payment made to KwikFit, or more money is borrowed

  1. Manual balance pot (debit)

I have a savings account with a 3rd party provider which does not have a balance API.

I set up a manual pot to reflect the current balance of the account with a reference of Savings, linked to the account as a payee.

Everytime I put money in that pot, it increases the balance and sends a payment to the account.

Withrawals are not allowed.

Balance can be updated at anytime to reconcile the pot balance with the 3rd party balance, e.g. if a payment is taken out of the account

  1. Automatic balance pot (withdrawable)

I have a bank account with a 3rd party which has a balance API.

I set up a pot linked to the account, this sets up both a payee and a withdrawal method such as a DD.

Balance is set by the 3rd party (i.e. add/withdraw actions do not amend the balance until cleared at the 3rd party), every time I add money to the pot it sends a payment to the 3rd party, when I remove it requests a transfer to my monzo account.

  1. Automatic balance pot (non-withdrawable)

I have an account with a 3rd party such as a utility provider which has a balance API.

I set up a pot linked to the account, which adds the 3rd party as a payee, with reference of my account number with them.

Balance it set by the 3rd party. Addition of funds to pot will send a payment to that provider.