A lot of banks have their public image deteriorated already, because of the ethically questionable activities that engage in. Even though banks are still very valuable to society, it is quite difficult for them to regain the confidence their clients once had in them.
There are instances where you might need a banking service known as loan. The loan might be to service an emergency or other urgent need. You can consider patronizing My Lender after reading about them on Suormiarvostelut and you are happy with other customer’s experience with them. Here are some tips for ethical banking banks can practice:
Recover their social role
The major social role of a bank is to create wealth by investing capital in safe places and facilitating credit for those who need it. This role is what prevents the financial system of society from bailing out. However, from the look of things, it seems that banks are not working in this capacity. They need to rearrange their priorities and put their social role where it ought to be.
Even though most banks claim to be transparent in their dealings when they state their values, this isn’t put into practice. Banks are required to provide relevant information beyond what legislation stipulates. Putting this relevant information in the dark has devastating effects on society. Although preferred assets and securitization are not entirely bad, the reasoning behind them has to be transparently and thoroughly explained.
Use more ethical solutions
In terms of crises, banks tend to take the easy way out. For instance, they prefer to evict families instead of looking for better solutions to the crisis. This shocking lack of creativity has set many teeth on edge and led to a drastic reduction of people’s confidence in the financial sector. Moving forward, banks are expected to look for solutions that won’t affect many families when making decisions.
Non-attachment to unethical practices
Under the law, banks are not meant to condone any unethical behavior or practice, no matter the status of the individual or organization involved. However, banks nowadays do the exact opposite. They collaborate with other unscrupulous individuals and institutions to engage in money laundering and create fiscal paradises. This dents their good image and portrays them as an enemy of the people.
Prudent administration of funds
As clearly stated in the law, a bank’s funds are not the exclusive property of any member of the executive board, even though most of the time, they own a small part. Every governing board of a bank must realize that some low-income savers and shareholders are affected by every bad decision they make, and as such, must bear this set of people in mind when making decisions. Also, a bank is not meant to abuse its position in society by introducing abusive mortgage conditions or selling fraudulent assets.
Avoid pressuring clients with investment advice
Most times, bank employees often advise clients on which type of investments to consider. Even though this is not entirely bad in itself, these employees go further by pressuring the clients to accept their choices. This is because banks give incentives to staff who can sell financial products to people, either they are suitable or not. These poor recommendations often lead to clients meeting their waterloo.