The 2013 film Her was about a man who buys an artificially intelligent operating system for his computer “that listens to you, understands you and knows you”. So how would you feel about having that sort of relationship with your bank?
A new bank being launched on Tuesday 3 May appears to be trying to tap into this vaguely sci-fi-ish concept. Called simply B, the bank is built around an app designed specifically for tablets and smartphones, and is offering a current account and a savings account (other products are promised). But the monthly fee that kicks in after 12 months could turn many people off.
Claiming to take inspiration from lifestyle and health apps rather than “the more sterile fare on offer from the traditional banking sector”, B looks like the sort of thing that would be launched by a tech company or startup, but it is actually the brainchild of Clydesdale and Yorkshire banks, founded in 1838 and 1859 respectively.
The B current account pays 0.5% on balances up to £2,000, and nothing above that, and offers a 12.5% EAR overdraft rate, plus a two-day grace period on planned and unplanned borrowing. The savings account pays 1% on all balances.
However, it’s the intuitive app and range of interactive tools designed to help users take control of their money that makes B stand out from the crowd, or so say those behind the initiative. Along with functions that let users set up savings pots, tag and track spending or automatically sweep cash between current and savings accounts, it also learns as it is used, says Helen Page, the banking group’s propositions and marketing director.
By analysing users’ spending, B can spot where they might have extra cash left in any month, or let them know their finances might be a little tight. “B will tell you whether you’re good to go when you see that must-have jacket or pair of trainers,” says Page. “This feels very different – B gets to know you. The more you use it, the more it finds out about you. Nothing like this exists right now.”
The big downside is the fee. The current account is free for the first 12 months, but then you must pay £2 a month – ie, £24 a year. Page says the group consulted with potential customers over this charge, adding: “If you feel after 12 months that you’re not getting value, then you can move off it.”
Some people may feel that if they are going to pay a monthly fee, they might as well sign up for something like Santander’s £5-a-month 123 current account, which gives cashback on bills and an interest rate of 3%. Others will feel their existing bank’s app and website are quite whizzy enough for their needs.
B is aimed at attracting “a newer, more affluent segment of customers”, and is also part of a plan to give the banks more of a presence outside their heartland regions. Customers will have the back-up of the Clydesdale and Yorkshire banks’ branch network, plus a dedicated UK call centre. .
