Open source brief number one. Solve the "problem" of saving.

re: Open source brief number one. Solve the "problem" of saving.

Vincent van der Lubbe — Wed, 14 Oct 2009 20:35:02 GMT

Yes, default options are normally good. But why would you save something when you don't know what for? Then you are likely to spend it on the next bigger thing (car, home decoration etc.).

There are very little rewards for saving, the interface is horrible. Everytime I look in my dull bank account I try to leave as quickly as possible (might also have other reasons :-): You can't get your goals and money visualized nicely in your online-bank account (it's growing, oh my God!). There are no "you are here (x % completion)". There are no "sound effects" when you put money in your online piggy bank (sounds are one of the strongest factors in gaming). No smilies or non smilies. No thank you's for saving. Accounts look like blue screens designed for accountants and focus on payments instead of goals, savings, spendings and risks.

There is no context provided around it, which frames the mindset into doing something for your goals, avoid poverty, save for your family and such. And there is tons more, which can be optimized. Until now banks seem to be more focused on Assets under Management and product and interest margins than helping their clients to save more (it's not a KPI in banks). I'd like to take on the challenge to really change something here. Where do I start?

re: Open source brief number one. Solve the "problem" of saving.

Sophie — Sun, 28 Jun 2009 11:14:15 GMT

You are right about the pension scheme, retirement seems a long way off to many people in their twenties. Other types of saving seem more important than a pension.

Competing amongst friends to save the most would be good. Showing this visually in some way - maybe on facebook or another social networking site could potentially work? A money saving measurement on your profile which everyone can see... placing bets on who could save the most. The one who does not save the most in a year has a penalty to pay...the thought of a penalty would act as the incentive to save. hmmm.

re: Open source brief number one. Solve the "problem" of saving.

Rory Sutherland — Thu, 11 Jun 2009 16:03:02 GMT

I shot a man in Guangzhao, just to watch him die.

This makes a lot of sense. If your family is only a generation away from an agrarian existence, it must bias you towards cautiousness.

Even so, I am convinced that you *could* easily create a savings culture in the UK. I think brands such as Tesco would find it quite easy. Try offering a "10% of what you spend at Tesco gets invested" default option and see what happens then.

I also think the whole concept of the pension is misguided. When you are in your twenties or thirties the whole idea of retirement seems so remote as to be comical. But other forms of saving, which let you draw down at any time, are relatively penalised by the tax system. This seems all wrong.

re: Open source brief number one. Solve the "problem" of saving.

Charles Frith — Thu, 11 Jun 2009 04:18:29 GMT

The couple of thousand years of a savings culture is the largest factor. Frugality is a way of life that largely revolves around the rice yields which aren't always successful and famine is not unknown in this part of the world. The US by contrast is an abundance culture. There's no incentive to save because traditionally tomorrow is always going to be better than today although some might argue that the harvest festival was an indicator of more puritanical and sensible times.

Yes you can ask someone how much they earn, or how much their rent is but no Chinese person tells you their net worth. It's an invite to be robbed and they're no worse at that sideline then the inhabitants of San Quentin.

(I've been watching the Johnnie Cash Youtube clips)