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Will Simple fix the personal banking system?

 

The global financial crisis is one thing, but discontentment about personal banking has been growing for a while. Service fees, late fees, transaction fees, confusing terms of service, and general unhelpfullness of bank employees is something we all experience once in a while. Banks are supposed to help us manage money, but they’re clearly not.

The good news is, some alternatives are coming. We already know Mint, the personal budgeting application, which features useful planning tools and the ability to track expenses. Here comes Simple, an online banking service. Simple registers your expenses, categorizes them, and takes into account your future automatized payments (e.g. rent) as well as saving goals when displaying your balance. That way, you know exactly how much you can spend, and whether you can afford that $4 latte or $20 concert ticket. Its iPhone app also simplifies transactions; you can cash a check, reimburse a friend, split a restaurant bill, etc., without fees.

Simple partners with local and community banks, and offers personlized customer service – you get to talk to someone right away instead of navigating the automated voice system, and even speak with the same representative when you call back next time.

And it looks great (I mean, the app’s font is Gotham!)

Simple is so far only available by invitation, and to U.S. customers. But there’s no doubt the potential is huge. It’s good to know someone’s got our back…

More info here and here.

Photo credit: Fasctodesign.com.

Europe’s other brain drain

To each financial crisis its own population exodus.

While tough economical times led millions of Italians, Irish, Greeks and others to emigrate massively to North America in the first half of the 20th century, Europe saw the trend turn around during times of prosperity with the arrival of families coming mainly from Africa and the Middle East. While this latest trend still exist, a new phenomenon should not be ignored – young Europeans are escaping bleak work prospects and living conditions to venture abroad. But this latest migration wave is slightly different from previous ones. This time, college-educated workers are the ones who choose to leave.

In Spain, where the unemployment rate is about 45% for young workers, many of those who do manage to find employment have to make do with a low salary (they’re called “mileuristas” because of their 1000 Euros monthly wage.) Those who decide to move abroad in order to finally get hired look at Europe first: Germany and the UK mainly, where the economy is still relatively healthy. But some go further. Dubaï, Brazil, the U.S. are some of the examples I found during my research. As a result, it is estimated that Spain will lose about 500,000 of its residents over the next decade, and there are already more people who leave the country than who enter it. Although these numbers don’t compare to the immigration waves of the 60′s (1.5 million Spaniards left for greener pastures,) they are not insignificant either.

Greece has obviously been affected as well. Young and not-so-young graduates leave the country in search for a better work situation. Some leave Athens to move back with their families in the countryside. In Greece, maybe more than in any other place, the future looks sombre, at best blurry.

Read more…

Occupy love

I just stumbled upon this great film featuring Charles Eisenstein, author of Sacred Economics, in which he summarizes the motivation and organization behind Occupy Wall Street. It’s not about fighting the 1% he says. There’s no opponent. We’re all in this together. I found the following words particularly touching:

The loss of community, the loss of connection, the loss of intimacy, the loss of meaning. Everybody wants to live of life of meaning.

These words might sound overly theoretical or philosophical to some, but in recent years I’ve become more aware of the tangible effects of the lack of connection we all feel in our lives. When I went to Vancouver’s Downtown Eastside during the Olympics, the social workers and community leaders who had to deal first-hand with the effects of addiction had this to say: the treatment of addiction is not all. What matters is the cause, and the cause of addiction can be found directly in the lack of sense of belonging, of community, of connection that is prevalent in western societies. The Downtown Eastside shows the darkest side of this sens of disconnect, but we all experience it at some kind of level. We should pay attention to signs such as widespread addiction issues, instead of treating them as collateral damage. And look for meaning, humanity, and connection in our lives.

Occupy Love has a website: http://occupylove.org/ where you can watch more videos about the OWS movement.

Remembering Steve Jobs

Steve Jobs

The reactions to Steve Jobs’s death around the world have been quite extraordinary, and reveal how much his work has had an impact on the world of technology, business and design. Jobs actually changed the lives of millions of people by bringing computers into their daily routines, now followed by iPods, iPhones and tablets. It’s hard to think a businessman could be so influential.

Jobs was an odd character, a sort of charismatic leader who had devoted followers, led religious-like presentations to launch new products, cultivated a powerful and impeccable brand image, and nurtured secrecy. His rigid leadership, combined to an innate sense of innovation, led him to helm one of the most powerful and successful companies ever.

The aspects of Steve Jobs’s work I wish to celebrate, because I think they are relevant to Defiant Imagination’s mission, are his incredible perseverance in trusting what I think was his gut feeling and believing in his ideas, his belief that excellent design was an essential part of the product’s usability and his insistence in delivering good design to the masses. I think Jobs ultimately respected his customers and believed they deserved no less than the best. I don’t agree with all of Apple’s positions, but this is not the point. I’ve been a user of Apple products for many years and I just wished to celebrate Steve Jobs for being responsible for the tools I use to work and entertain myself everyday.

I found this interesting infographics today (click to enlarge):

Richard Florida: the age of human potential

Richard Florida spoke at last month’s Economist Ideas Economy Event. He talked about smart kids in his old neighbourhood, wise advice given by Jane Jacobs, and why his last book is so good and its critics are wrong. Plus other things he explains much better than I:

Income inequality: a Slate.com series

Slate.com produced an excellent series this month about income inequality in the U.S. I haven’t had the chance to read it all, but learned a lot from the first article, which acts as an introduction.

For example, during America’s mini-booms of the ’80s and ’90s, “more than 80 percent of total increase in Americans’ income went to the top 1 percent.” While productivity increased by 20 per cent, “virtually none of the increase translated into wage growth at middle and lower incomes.”

Read more…

Charter cities: using urbanization to boost development

Economist Paul Romer has an interesting take on getting third-world countries out of poverty. His idea: to build “charter cities” operated under an independent jurisdiction, just like Hong Kong used to be. Think Canada taking over Guantánamo Bay for a while to oversee its development. Romer’s plan might be ambitious and extravagant, but it has nonetheless been generating a great deal of interest.

Read a Q&A with Romer on the New York Times’ Freakonomics blog.

Visit the project’s website.

Watch Romer’s TED talk:

On giving

One of my last readings was Dambisa Moyo’s provocative essay Dead Aid. While I don’t feel qualified and knowledgeable enough to take a definitive position concerning the debate between international aid proponents and its detractors, I do feel that something has gone wrong in the relationship between developed and third-world countries.

The situation of depDead Aidendence of third-world countries on foreign aid has been going on for far too long to remain healthy, and it has been leading to abuse in many cases (the example of the mosquito net, used several times by Moyo, is a good one. Mosquito nets manufactured by rich countries are then sent to poor ones out of good will, even though poor countries would gain more from manufacturing the nets themselves thanks to foreign investment.)

Reading Moyo’s essay has brought me to think about altruism and the act of giving. One thing I’ve learned from my trips to developing countries is that I had much more to learn and receive from the local population than the opposite. The reasons that motivated my trips had to do with a feeling of collective guilt that we try to address through aid. I do not wish to be in that position ever again, since I’ve come to think that it does more harm than good. What I’d now like to concentrate on, as far as international cooperation is concerned, is to foster mutual understanding and learning.

As for giving, I believe that many issues still need to be taken care of around me, even if I live in one of the richest parts of the world. I’ve thereby come up with a list of innovative ways to make good use of your money. Rule n°1: know where your money is going.

  • Don’t focus on the material stuff only Journalism might be going through what might be its biggest crisis ever, but there will always be a need for reporting. Spot.Us gets readers directly involved in the editing process by allowing them to choose and fund the stories that they think are worth writing about. The website started out in the Bay Area and is now providing the same services for Los Angeles. If it works, this model could be brought to many other communities.
  • Be picky With the growing success of crowdsourcing and crowdfunding, we’re going to start seeing more and more online platforms that will facilitate the making of ideas and projects. Kickstarter acts as a fundraising platform for creatives who have a specific project in mind. For example, artists, photographers, filmmakers or writers can get help for their next book, film, or endeavour. Projects only receive fuding when the target amount has been reached, although this amount can go beyond expectations. In return, donors get involved in the creative process by staying updated and receiving little perks. A relationship can therefore be initiated between donors and receivers. Firstgiving is based on the same principles, but concentrates on charitable initiatives. Individuals can create a personal profile and raise money for the nonprofit of their choice. These platforms allow for donors to choose which project, among hundreds, suits them best.
  • Be original If you have a lot (and I mean, a lot) of spare change you’re willing to give away for a good cause, the Globe and Mail can show you how . Their weekly column Giving Back, published each Saturday, features original ways of donating or raising cash. A soccer camp for kids with cancer, a community association, a specific research area, a student in need of a scholarship are example of recipients. Donations can amount to several thousand dollars.
  • Invest in entrepreneurship I don’t want to rule out financial aid to developing countries entirely, as there are several kinds of initiatives I believe in. Microcredit is one of them, even though its efficiency is still subject to debate. Kiva acts as an intermediary between lenders and entrepreneurs in need of a boost for their business. Because you’re lending the money and expect to receive interests in return, receivers can keep a sense of pride that is lost in the traditional aid process.

As for me, I give a little bit each year to WBEZ Chicago Public Radio and WNYC New York Public Radio for my two favourite radio shows, This American Life and Radio Lab.

A visit to In Good Company Workplaces

A few months ago I found out about a unique coworking space in New York City. In Good Company caters exclusively to women business owners and provides them not only with an extremely convenient and elegant working environment, but also with valuable support and collaboration opportunities.

I visited the space last April during a trip to the city and had a chat with co-founder Amy Abrams.

In Good Company

How did you get the idea for In Good Company?

My business partner Adelaide Fives and I worked together for about three or four years in a consulting practice with women who were in career transition or women business owners who were experiencing problems. Over the years we found these women kept articulating the same challenges. They had this tremendous sense of not knowing anybody else who was doing this and when they had to see clients they didn’t have a place to meet them. We always wanted to give them a resource to solve this sense of isolation. We couldn’t find that resource so we decided to create it on our own. We thought that what these women were missing was a community of peers, and a place to work at when they needed it. A lot of good resources were getting lost because people didn’t know how to share them.
We knew we wanted to have a physical space and allow people to rent it when they needed it. That already existed, but the key component to what we wanted to do that was different was this sense of community. So we described ourselves as a community membership and a community workspace. In order to ever use our space you have to be a member of our community.

Read more…

Microloans work best when business skills are taught to receivers

A recent New York Times article looking at several examples of microcredit programs around the world notes that their efficiency is increased when business skills are also taught to the receivers. Small business owners thrive when povided with basic entrepreneurship skills and networking opportunities, which allow them to discover new approaches and ideas.