Should people manage their bank accounts? No!

One of the points raised many times at Next Bank Europe is that banks should give better tools for people to manage their accounts and finance. Actually, when asked, most people want to be able to better manage their bank accounts.

However, maybe this is looking at this problem through the wrong lens. Actively managing my own finance is a social holy grail. Amazon has at least 14,000 references for Personal Finance Management. TV shows are devoted to educating people on better personal finance management.



What is more surprising is that personal finance, accounting are rarely taught to children and studied in school.¬†Society sets proper personal finance management as a key life goal but does little to equip people with this task.¬†It’s no surprise that people’s finances range from well-managed to sub-optimal (too much cash on checking account for example) to catastrophic.

But the focus put on Finance Management has another consequence. It constrains the problem of building a better bank to a very specific framework. For people to better manage their finance, banking innovators believe they should make their various products more transparent and easy to use. What if the question was: should people even use these tools?