Only the market will truly change the banking system

[epiphany]

Politicians have shown they will do sweet F all about the systemic problems of the banking system. They just nibble around the edges. All talk, little action.

 

Besides, is it really their job to do such a thing, and do we really want to be so dependent on them to fix our problems?

 

We as consumers "voted" for, capitalised and empowered these banks. Although it is also true that politicians bailed out failed banks with our money when they could have instead capitalised banks with a history of responsible and ethical lending. They're obviously either too stupid to understand that (unlikely) or the lobbying power of these existing banks is overriding any sense of sustainable and rational economics (more likely).

 

Therefore the only meaningful solution lies in us, as consumers, becoming so disillusioned with our existing institutions that we move our money out of them and vote for a more reputable alternative.

 

There are clear signs this sea change is occuring right now.

 

When consumers become fully aware of the more "undercover" unethical and unsustainable practices of their beloved banks (and they will), they will have no choice but to look elsewhere, for banks more trustworthy and in touch with the needs of society as well as their profit margins (the triple bottom line).

 

Once this happens, and people start moving their money, you can bet your bottom pound that those once behemoth banks who are rapidly losing custom and capital will hire huge armies of marketing bods to look at what is attracting customers away from them and towards these alternatives. It will leave them no option but to emulate the successful models by adopting charters that better represent the long term needs of their customers.

 

The market will bring change far sooner and more efficiently than our politicians will, but we first need to reach the point where we are no longer merely dissatisfied with the "big 5", but completely intolerant of them.

[I1L2T3]

I think you're right. People will start to move away from the big banks. They don't desrve to have customers.

[epiphany]

People will start to move away from the big banks. They don't desrve to have customers.

 

Exactly.

 

How much can we really expect of our MP's in regards to creating a better economy while we as consumers are still loyal to the institutions that are involved in the dodgy practices that defile it?

 

There are many alternatives out there, some big (i.e. the Co-operative Bank), some small and developing (i.e. many of the nation's credit unions), but as more people move their money, they will grow to meet the demand.

 

We just have to have faith in the power of the market to change how business is done.

 

There is, however, one way in which the state could help this process along - tax incentives for banks with ethical charters and more bailout money invested into community and mutual banks. But at the end of the day, government action is secondary to direct consumer action for changing the banking system.

[saunaman]

Totally agree , have been with my High Street bank for almost 30 years , but it's been the easiest thing in the world to switch over to a more ethical bank in which there are no directors who get big bonuses .

 

As sheepies we need to look into where our strength lies , and it lies in our hoofs ( sorry feet ) . Vote with your feet because that's the only vote we've got - only takes about an hour to switch bank accounts , dead easy and immensely satisfying !

 

Am looking forward to writing that "Dear John" letter to my bank , but will also be sending a letter to my local branch , because the people at ground level cannot be faulted in terms of their customer service , they have all been fantastic over the years and , I'm sure , will easily find jobs in a more ethical banking sector ( hopefully )