The financial system is based in several paradigms, the most are rational but some are discussable. One of them is the management of savings system and credit system separately. Many people, companies and institutions, privates and states, have savings for one side and debts for another.

Many people have savings in pension systems and simultaneously are paying mortgage loans; the majority of companies have debts with their suppliers and banks, and accounts receivable by their sales; and a lot of institutions also have financial liabilities and assets.

If these financial liabilities and assets could be integrated in one or few accounts, the financial situations of these entities would be more stable and then the financial system would be more stable. We would not have payment chain problems as we had dramatically in the current financial crisis.

Why does financial system not have integrated savings and credit account financial instruments?

There are not economical reasons; on the contrary, it would be very necessary to the economy improvement. The problem is only technical and mathematical finance. But also is a banking paradigm problem, the most banking people are blind in front of this possibility.

The Sciac card is a financial instrument that allows integrating savings and credit accounts. Therefore, it is an instrument that would contribute to solve faster the financial liabilities and asset management problems generated in this financial crisis and before.

[Published in the Bank Innovation and American Banker Blog]