What should you expect from your bank?
I remember when I first opened a bank account for my eldest daughter. I went into one of the high street banks and said that I wanted to open an account and soon found myself sitting in front of one of the 'managers' discussing my requirements.
I specifically remember asking him if my (daughter's) money would be safe in the bank. He was baffled by the question. "Of course it will, this is a bank" he replied. In some senses of course he was absolutely correct - as all accounts are guaranteed by the state up to a value. But what I found odd was that he didn't seem to understand the implication of the question which was that the bank was effectively a business like any other, subject to the ebb and flow of the market.
In the recent financial turmoil I found myself asking a very important question...
What do I expect from my bank?
The first answer I came up with was that I expected them to bank my money for me, which to me meant that my money would still be there the next day at the very least with interest if possible. I shouldn't have to worry about my money in the bank. That's why I banked it.
But if you think about it, most banks have shareholders who want to maximise their returns and high paid employees specifically hired to deliver those returns to the shareholders. Neither of whom have my aspirations as an account holder looking for a safe place for my money as their top priority.
Is there space for a new style of bank designed with its account holders as the principle focus?
Absolutely.
I specifically remember asking him if my (daughter's) money would be safe in the bank. He was baffled by the question. "Of course it will, this is a bank" he replied. In some senses of course he was absolutely correct - as all accounts are guaranteed by the state up to a value. But what I found odd was that he didn't seem to understand the implication of the question which was that the bank was effectively a business like any other, subject to the ebb and flow of the market.
In the recent financial turmoil I found myself asking a very important question...
What do I expect from my bank?
The first answer I came up with was that I expected them to bank my money for me, which to me meant that my money would still be there the next day at the very least with interest if possible. I shouldn't have to worry about my money in the bank. That's why I banked it.
But if you think about it, most banks have shareholders who want to maximise their returns and high paid employees specifically hired to deliver those returns to the shareholders. Neither of whom have my aspirations as an account holder looking for a safe place for my money as their top priority.
Is there space for a new style of bank designed with its account holders as the principle focus?
Absolutely.
