What makes a 'good' bank?

I had an interesting chat with my 12-year old as we went out for a walk. He had just found out about a bank in Minecraft Skyblock so he could deposit his coins safely while going on adventures. And he got super excited after finding out that he could also earn 2% interest with the deposit. Go figure.

Me: I have no idea there is a bank in Skyblock. That's cool. If they have a bank IRL, will you use them?

Him: I don’t know. It depends. Will they give me a good interest rate? Do they have good service? Will I be able to get my money right away if I need to? Can I trust them? Are they a good bank??

His last comment was interesting. And it’s a good question.?

It got me thinking. What is a good bank?

Beauty in the eyes of the beholder. Perhaps? But I did share my two cents with the kids.

For starters, it needs to be an institution that I trust, that has the consumer’s interest at the top of their mind. From habits (such as online shopping and vacations), to life events (such as new mortgage), and my financial well-being (such as income and debt), banks have no shortage of data on me, technically speaking. They also hold the key to where I can go next, based on how much credit I can have access to, for example.?

But to entrust any entity with such a massive amount of data requires trust: trust that we will not be exploited in the process, and trust that the data will be used for our benefit, instead of being shared with third parties for the benefit of the institution (for example, to sell us more irrelevant products). And actions, not words, go a long way in helping to instill trust. Does your bank provide you with the right products and services to help you get to long term financial security? Does your bank look out for your interests, and actively work to protect your assets and data against fraud? Does your bank support activities that are in line with your own personal beliefs??

I recently posed a question on twitter to ask my friends across the pond for recommendations on those that provide community-focused banking services and doing good for our society. Here are some of the responses:?

• Charity Bank: A certified B Corp that uses its savers' money to lend to charities and social enterprises.
• Triodos Bank: A bank that exclusively finances sustainable enterprises - from social housing for disadvantaged groups to groundbreaking renewable energy projects.
• Algbra: A fintech that helps consumers spend, save and grow in a sustainable and ethical way.
• Bloom Money: A fintech built for immigrant communities, to help people borrow or save money within their community or social group.
• Kestrel: A fintech that helps Muslims budget, save and invest in line with their values.
• Wealth8: A wealth tech that brings together a community of like minded individuals serious about growing their wealth, learning the language of investments and engaging on lifestyle and money issues that resonate with the black and multi-ethnic communities.
• OneBanks: A bank agnostic platform that uses open banking to facilitate everyday banking services of both challenger banks and major traditional banks to customers in one location.

By tackling societal challenges from sustainability to financial inclusion, and helping consumers build a better financial future, these incumbents and startups are leading with purpose, and showing us there is another way to go beyond good — even in financial services.?

Our path is dictated by choices we make and not make. As we go through our day-to-day, consider not only the immediate impact of your choices, but the long term consequences of our action and inaction — the opportunity cost of not doing something.

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And while we are on the topic, here are a recent good read from my good friend, Mary Wisniewski on cash and "branch stand-in", which highlights the need for inclusive thinking in a fast-evolving digital world.?

“The quest for more digital customers requires cash access … those who are comfortable banking only online may still earn income in cash and need a place to put it.” Mary Wisniewski?

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In this week's One Vision podcast ...

Is fintech transitioning from teenager to adulthood? If so, how do we learn and grow together as a force for good? Are we making the right choices? And how can we help shape the future of this industry, from what we do, to who we include at the table, and how we get there?

In this episode of One Vision, I chat with Raf de Kimpe about the upcoming Fintech Week London (July 11-12). With a full suite of partners including the Department for International Trade, London & Partners, and the City of London, along with conference topics ranging from open finance, identity, big banks and big tech, to cryptocurrency, sustainability, and fintech for good, there will be no lack of thought-provoking conversations.

It’s time to celebrate the human connections, make memories, and be part of something truly special.?

Give this episode a listen and let us know what you think.

"Breaking free — the coming of age of fintech"

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If you are interested in more #BeyondGood stories of inspiration and hope, check out our book Beyond Good here.

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