An old role for banks?
Traditionally banks were guardians of wealth, helping people to save. Perhaps they can take that positive role again. Here's how:
Instead of the 40 characters of text (or whatever) is currently gathered with each transaction for placing on the statement, banks computers should gather:
- The old one-line description, serving backwards compatibility, and as a heading.
- A link to the retailers web site for the transaction. This will remain private if it includes an unguessable address (e.g. many random digits)
- Lattitude and longitude of the transaction, if practicable.
- Exact time and date of the transaction.
- Which card (if multiple cards attached to account) was used.
- A breakdown of the items in the transaction (e.g. petrol $50, milk $3), including classifications.
- Details of taxes included (because this makes business expense claims easier).
- A child could be given a card that provides him a regular allowance to be spent on anything, but also allows unlimited expenditure on local buses and trains.
- A person saving for a house can allow unlimited purchases of hard-to-control overheads (rent, insurance, petrol), while setting a budget for discretionary items.
- Classifying expenses makes it easy for households to work out where their money is going.
- Tax information makes it easy to reclaim tax credits from GST/VAT without separately keeping a receipt.
- Card holders automatically retain receipts for all transactions without needing to hold onto and file paper receipts.
- No more querying a charge, only to find that it was legitimate, with a strange (or just plain forgotten) name?
- If customers want this then they'll prefer your bank.
- This technology is inevitable in the very long term. Take first mover advantage and you'll get publicity and generate something you can sell.
Labels: banks, budgeting, credit cards, expense claims, receipts