Would you buy a used car from your banker?

My one loyal reader will be aware of my deep antipathy towards banks and big banks in particular. I am appalled by their lack of integrity; appalled by their total ignorance of the concept of “service” to the customer as a priority (and NOT shareholders as a first priority); appalled by the uncontrolled (and apparently uncontrollable) greed shown to be prevalent in all levels of management in all banks.

That the banking chickens have now come home to roost, as it were, in Britain, Europe and America, is a measure of the breathtaking hubris, the corruption, the dishonesty, the lack of moral compass, the disinclination to accept responsibility, a cynical interpretation of ‘trust’, the injustice and (apparent) total ignorance of the need for ethical conduct – at Board and senior management levels of all banks everywhere (including Australia). What is playing out in the financial market is indeed an astonishing example of a corrosive and toxic culture that permeates from the top down. With staff at lower levels it is a case of “follow my leader”. The end result of this has been a belief in the mantra of profits and growth at any cost; a mantra extolling the virtues of maximising bonuses and maximising returns to shareholders without any apparent thought for the consequences that would, inevitably, flow from this self-serving attitude.

That was the cause. Now for the effect. Now is the time to pay – and make no mistake there will be a massive payout; a massive cost. Not just in money (banks can always make more!) but in the damage to the brand of “Bank”.  The public have lost trust in the integrity and purpose of banks. In this context read Barclays, HSBC, CitiBank and many, many, others.

In the Australian context, and as a case in point, there is a media release by Steven Munchinberg, the former CEO of the Australian Bankers Association (not sure of the date but it is fairly recent) entitled “Think twice before bashing the banks”. Now in this article the word “profit” is mentioned many times. Share holders equity get a mention but the word “service” is mentioned only once in the second last line in the context of  “ good value services” (whatever that means). No mention of service to the customer (depositor); no mention of banks doing their very best for the customer (depositor) – providing a good “service” to the customer (depositor). Money and profits have nothing to do with service. And “service” does not just mean a bloke with a top hat and tails greeting customers at the door!!

In banking circles there appears to be no belief in, or even an understanding of the concept of ethics – that you need to treat others the way you would like to be treated. In banking circles there appears to be no understanding of the importance of trust – that sanguine belief that customers hold to, the hope that a bank (any bank) will do its very best for me (the customer). Some hope!!

Banks have forgotten that money will follow and flow from good service. Good service will NEVER flow from money!!

Without complete trust there can be no hope of any successful business outcome. So, in the words of the title of this post, “would you buy a used car from your banker”?

Think VERY carefully before you answer.