How We're Building a Better Bank: Negotiating Privacy & Utility

I would also like to see one of these services predict periodic expenses properly. e.g., I pay my car insurance once every six months, and I would love to see this as an amortized expense (as if I'm "saving" monthly to pay this expense when it comes due). Mint does not do anything like this.

  > We think it's in your interest as a customer to provide us relevant
  > behavioral information. 

There is a way out: browsers have very powerful JS engines and it is possible to do client-side processing and even store private data encrypted somewhat securely without the service provider having access. But since this concept doesn't lead to profits it is completely disregarded. There are many systems using this approach, like password managers and secure email services. It's not perfect but it's been out there for many years.

Be a bank or be something better that isn't a bank, but you can't have your cake and eat it too.

Where? Less money in your account = less money for the bank to loan out and make money from. Also, in the US anyway, overdraft is "off by default", due to new laws (and that banks realizing customers hate overdraft fees). If you spend more money than you have, the transaction is declined.

If banks wanted you to spend money, they wouldn't give you fee waivers and higher interest rates when your balance goes over a certain level.

(Credit cards are a whole other issue. They want you to spend up to your limit and pay the minimum every month. But loans and deposit accounts are two very different beasts.)