I Know How Kevin Phillips Feels
It is being reported that Kevin Phillips penalty kick in the Championship Play-Off Final was worth £120,000,000.
I know to a certain amount how he feels today.
I was part of the team that sold Metier Management Systems to Lockheed for a similar sum in 1985., although with inflation it’s probably worth a lot more today.
As we went about the pre-sales process, we realised we had good methods and software, but everything was rather boring. So I was asked if I could create a version of Artemis with style and charisma. I did nothing else for six weeks, except write software, eat and sleep occasionally, but the result was that we received a lot more money, than we had decided we would accept.
It was the software and business equivalent of Kevin Phillips’s spot kick.
I also have two other characteristics that I share with Kevin. We’re both about the same height of 1.70 metres and we both performed our most important feats at just under forty years of age. He also is a man from North Hertfordshire, whereas I was brought up in that part of London, that used to have a Barnet, Herts postal address.
Co-Operative Bank Ditches Business Lending
This story on the BBC web site, says a lot about the state of the Co-Operative Bank. Here’s the first bit.
Co-operative Bank has stopped offering new business loans amid concerns over its capital position.
The bank is continuing to provide lending to existing customers, but has frozen lending to new corporate customers.
I don’t bank there, but if I did, I’d be moving my account for safety reasons tomorrow. If not today!
Bankers Don’t Get It Do They!
My bank, Nationwide, has just made me an offer. If I pay them ten pounds a month, I get a special account, which gives me the following benefits.
- Free worldwide travel insurance for you and your family, including winter sports, golf, wedding and business cover
- Free Worldwide mobile phone insurance
- Free UK & European breakdown cover
- 3% AER (2.96% gross p.a.) variable in-credit interest on balances up to £2,500
Is this a joke?
They say it’s designed to make my life simple.
Let’s take each point.
Starting with the travel insurance.
I don’t have any family, who are dependent on me. I don’t do winter sports or golf. I don’t have any plans to get married and my business, if I have anything is enjoying myself.
I suppose I do need some form of travel insurance, but at the moment, I’ve no plans to go outside of an area, where I get decent healthcare on my EHIC.
The mobile phone insurance is irrelevant, as I use a £10 phone for my communications. If I lost it, I’d just buy another in the nearest O2 shop for a tenner.
Is the third point about breakdown insurance serious? I don’t have a car.
But I reserve my highest condemnation for the derisory interest rate on savings. I’m getting a safeguarded five percent on over a hundred thousand pounds with Zopa. So it’s not government guaranteed, but the company is run by people with intelligence and not a wunch of bankers.
There is no mention of the features I would like.
- Text messages every time, a transaction over a particular amount happens on a credit card or bank account.
- Annotated statements, that allow me to comment on transactions. Taken to its logical conclusion, you could even add a cost code, which could then be used by software to create a simple set of accounts.
- Full tracing on cashpoints, I’ve used. I’ve noticed that the records of those I used in Switzerland are much more detailed than the one I used yesterday in Islington.
- Customisation of my bank account, so that I set levels for alerts, withdrawals etc.
There is an opportunity out there and the first bank to go that way, gets my business.
In this article, the banks are accused of being less than co-operative with the peer-to-peer lender; Funding Circle.
Who’d have thought that those respectable banks, would do something like that?
The Anti-Fraud Advantage Of Sites Like Zopa
If you wanted to get money out of someone else’s bank account, all you need to do is login to their computer and have the equipment necessary to perform a transfer.
My bank account is probably as secure as any other, but I never keep my card reader and the card together. Admittedly, all card readers for Nationwide are the same, but my passwords are only written in my brain.
But if you did manage to login, you could perform a transfer to your bank account, but it would probably require me to give in to threats to release the passwords.
But with a site like Zopa or Ratesetter and probably many others, where the only transfer out of the account can be to the bank account, where the money came from in the first place, you’d have quite a problem getting round the security measures. The very fact, that they exist, would probably mean you’d try to crack a more mainstream system, like an account with one of the major banks.
It illustrates how often a simple absolute rule, is often a much more secure method of protection, than something based on complicated hardware and tortuous passwords.
Giles Andrews On Zopa
I found this article on Wired, which is an interview of Giles Andrews, the CEO of Zopa; the peer-to-peer lender.
Read it, remember the salient points and if you don’t swallow the message about the banks, you don’t deserve to have your savings protected. Take this statement from Giles.
A lot of banking is in a black box and consumers don’t really know what happens. Give your money to Barclays, in a savings account, and god knows that happens to it. Is it going half way round the world to buy some weird book of securities, or is it being lent to a small business in Sheffield?
A lot of people put their money in the Co-operative Bank because of reasons like this.
Do Banks Design Systems To Trap Us Into Extra Payments?
Twice now in the last three months, I’ve been late with credit card payments. Nothing serious, but I got an extra charge of £12.00. I think it happened, as did the other one, because I tend to pay my credit cards all at the same time at the end of the month, when my American Express Card comes in and I’ve just had my pension payment.
So as I was flush at that time, I paid off most of the debt on the card. But apparently, I paid too early in the last accounting period or something.
The last time, it happened on another card, they phoned me to say why hadn’t I paid. When I said what about the extra payment they gave it back.
But how many of us, get caught out by rules, that need to be read by a lawyer with a fine tooth comb?
What would help, would be the ability to define your payment date on your credit card. I seem to remember doing this many years in the past. Zopa incidentally, allows this when you borrow and even allows you to change the date, due to a change of circumstances.
In some ways I’m getting my own back. For travel, hotels and large purchases, I now use my American Express card and for small ones, I now use cash. The problem is Waitrose, where their self-service tills don’t take cash. Marks and Spencer and Sainsbury, who both have better tills, do.
Peer-to-Peer Lending In The Times
There is a good review of peer-to-peer lending in The Times today. One of the most significant things of the piece is that Google has taken a small stake in Lending club. There’s more on the Google deal here.
The banks might not like it, but the writing is on the wall.
Today, I’ve started to move my working deposit account to Zopa.
A Low-Powered Bank
Banks can’t even get their electricity right!
I took these pictures of Lloyds TSB at The Angel.
They were suggesting you went to their branch in Kings Cross. But there must have been six operating cash machines and four banks within crawling distance of this branch.
Perhaps the episode shows how little we miss a particular branch. After all, there wasn’t a queue of angry customers outside, waiting to cash cheques.
So perhaps, if the branch closed permanently, it wouldn’t be missed. except of course, by the staff who work there.
Co-op Bank Debt Is Rated Junk
This report, says that the Co-op Bank‘s debt isn’t very highly rated.
I wouldn’t know whether it is going bust or not, but because of its political leanings and links to the Labour Party, I bet that management of the bank, wish that George Osborne wasn’t Chancellor.
What I find strange about the bank, is that why some of my left-leaning friends, who support Labour, bank with other banks, like Lloyds, Barclays or HSBC.
The Anonymous Widower 