10:30 am - Wednesday June 28, 2017

Do we need any behavioural changes in banks?

The thought for this topic was provided by Ross McEvan, Chief Executive of Royal Bank of Scotland.

Ross McEvan said in a commentary to UK’s Guardian newspaper “We need to change our behaviour at every level to reflect this simple truth.”

This acceptance has a very deep meaning and message.

Right now, the behaviour of banks is not at acceptable levels.

The customers are taken for a ride.

The customers are treated as a dispensable commodity.

The customers are forced to pay for the services they avail from the banks.

Robbing Paul to pay Peter is taking place day in and day out in banks.

The customers’ interests are not kept in mind while designing, developing and delivering products and services.

In addition, the banks do not treat their staff ‘fairly’

The banks treat their staff as their slaves (pardon me for my extreme language)

And naturally such staff when they deal with their customers, they do not treat them fairly.

When I say ‘banks’, I mean the bank officials, management, board, their policies and standards.

The banks feel that they sit on a high pedestal and no one can question them.

These banks work with focus on their quarterly performance in stock markets.

The banks feel they are at the mercy of their share holders.

And so their actions are for the benefit of their share holders.

The pay packets of these senior bankers are so designed with these stock market performance.

Naturally to earn more, our senior bankers go for short cuts and short term measures – not necessarily in the ‘long term’ interests of the banks.

Next aspect, the greediness.

Our banks exhibit extreme greediness always.

This has manifested transparently during the recent financial market crises.

They want to make more money – when they call ‘heads’ or when their opponents call ‘tails’. They want to win all the time.

Do you think any other reason for the so called mis-selling of insurance products, fixing libor?

It is only extreme greediness.

There is nothing wrong with greediness if it is operated within limits by proper supervision.

Extreme greediness with lax supervision is an excellent recipe for disaster.

This only led to the recent financial market crises.

Banking is no more a myth – we need transparency to the core.

The processes are to be made transparent, easy to operate and comply with, keeping the end customers in mind.

Well.

One may agree, we need serious behavioural changes in banks

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