Ah, to be 20something again and not know a damn thing about managing money. We’ve all been there, yet remarkably few banks have done anything to help teens and Gen Y learn how to control cash.
PNC Bank steps into the void by rebranding the basics of finance. Screw the bank statement — PNC’s Virtual Wallet recasts checking and savings accounts into a simple “money bar.” The service creates three types of accounts: scheduled out, money you have to set aside for bills; free, money you get to play with; and reserve, money you may want to save for a car or house someday.
The service is loaded with intuitive features that we wish we had at age 22. A calendar forecasts how much money you’ll have in the future when your next paycheck clears; reminders give you a nudge, like Mom, that it’s time to pay a bill. Why don’t other banks do this?
If you know anyone young and carefree who keeps their waitress tips in a ceramic jar, PNC’s rebranding of banking offers more than spin — it’s a clear, refreshing way to learn to get control of your finances.
So our brother is getting hitched next year and as we teased his fiancée over Thanksgiving dinner about vegetarianism, Walmart and energy consumption (let’s just say she believes in change), we thought of hope. You know, that crazy belief that if you do something different in the world, something good will follow.
We bring this up because the dour economic news is starting to choke hope in business. Inside marketing and planning circles hope is known as innovation, and the leaders of innovation are starting to falter.
Cutting-edge innovator Tesla, the upstart producer of high-end electric cars, has tapped most of its $150 million of investment and been forced to delay its second sedan model until 2011.
Internet innovator Twitter, the web communication service that proved invaluable during last week’s Mumbai attacks, still attracts $500 million buyout offers but makes some wonder if it can survive the recession while still in a “pre-revenue” stage.
And old-school innovator GE, the largest producer of wind turbines in the U.S. and one of our best hopes that humanity will figure out how to live on alternative energy sources and clean water, has had its stock hammered down to bargain-basement levels.
It’s worrisome because we don’t want to see electric cars, open communications or alternative energy die. Failing to innovate due to a bad economy is a good way to miss future growth. It doesn’t have to cost a lot; PNC Bank is grabbing market share among twentysomethings with a web site that rebrands stodgy banking to a hip “virtual wallet” — complete with a slick interface that forecasts how much money you’ll have next week after your paycheck clears. A little clever code, and PNC is putting on 4,000 new customers a month.
Sure, innovation requires risk. Johann Gutenberg went bankrupt in 1455 after printing 200 bibles … but within 50 years a half-million books and intellectual revolution had followed. Starting something new is like getting married. You don’t know where the road will lead, and you probably can’t afford it, but the act of faith gives birth to the future.
Photo by Rodney Smith via Maximo.