youthmoney

I was interviewed earlier in the week by a financial journalist. We were talking about young people and bank accounts. I just heard that nothing I said made the published article (a known hazard in talking to hacks). Which spurred me to offer some thoughts here about this crucial bit of financial inclusion.

The argument is self-evident. If you don’t have a bank account and deal only in cash, planning ahead is very difficult. You have to put more effort into daily life. Your money is vulnerable, to theft, loss or simple evaporation. You’re not part of the mainstream, with all the risks that involves.

So why doesn’t everyone have a bank account?

An excellent way into answering that question comes from Toynbee Hall’s Services Against Financial Exclusion (SAFE). They identified some of the common barriers that prevent people opening accounts and running them effectively:

• Money laundering regulations – Proving ID and verifying address
• Staff communication
• Staff knowledge of products
• Financial capability of customer (knowledge, skills, confidence)
• Fear or mistrust of banks/Don’t see the relevance to them
• Geographical/physical restrictions

The list, which is expanded with notes on the website, is very helpful for anyone planning working with young people. For example, “a negative experience due to staff communication can often lead to an individual deciding against trying again.” You betcha. Young people can be made to feel they simply don’t belong in banks, and, if rebuffed or patronised, are not likely to queue up for a repeat experience.

The advice on the SAFE site is rather formal, but in itself is very sound. The sections on “what can be done to overcome the obstacle” give useful pointers to projects working to reduce young people’s exclusion.