youthmoney

The banking industry seems pleased with itself. The British Bankers’ Association is trumpeting the take-up of basic bank accounts. It says that 7.4 million accounts are now in operation. Some 341,300 accounts were opened in the first quarter of 2008.

Jolly good show.

Some questions are not answered. Or even asked. One is, how many young peope tried to open a basic bank account and failed? How many were discouraged by long delays or the attitudes of bank staff? How many were rejected for not having the right ID or evidence of status?

It would also be useful to know how many of the new accounts were opened by people coming down the banking system’s ladder, rather than getting a step up on it. Bankrupts, people with county court judgements against them, as well as those with bad credit histories, are likely to be among those opening basic bank accounts.

So the figures may not represent success in giving individuals an entry into a system which they hope to upgrade from. They may be more a measure of those obliged to downgrade—indicating retreat, not progress.