Banking Issues

According to a former Lloyds’ Bank Manager, these are some of the issues that are preventing banks to provide the kind of service that UK banks were renowned for:

  1. There is now only a limited number of qualified staff in every branch. In fact, what used to be professional training for a professional body,  ACIB, has become a “School of Finance“.
  2. The training in “banking” is limited. It consists only of “sales”.
  3. There is now little responsibility in local branches.
  4. Instead, all decision making has been centralised. This results in the decision makers having little personal knowledge of the client or a perspective about a business.
  5. There is little comprehension of day-to-day business issues.
  6. There is no realisation of the criticality of time or expediency.
  7. There is limited knowledge of supposed Government support. As an example, the Small Firms Loan Guarantee Scheme (SFLGS) was reducing before the crisis.
  8. Instead of joined-up thinking, staff are only box tickers and have no room for initiative.
  9. MPs have very limited knowledge of the depth of the problems, even before the crisis.
  10. Day-to-day business borrowing for “normal” clients has never been excessive. In fact, it was already very restrictive to Small and Medium Enterprises (SMEs) and often even obstructive.

4 thoughts on “Banking Issues

  1. It is not an accident that the co operatives in the Mondragon region in Spain, found they had to set up their own bank ( the Caja Laborale ) to support their development, as the conventional banks were completely clueless – and unhelpful – about the needs of small business start-ups.

    There is a lot to be learned from the Mondragon approach.

  2. Yes, Kate,

    it’s the credit union approach, I think, and DEFINITELY the co-operative approach in the UK.

    It’s the Grameen Bank approach in Bangladesh and, to a degree, what used to be Building Societies before they became banks.

    It’s also about ‘organising oneself’ instead of being organised. But we are all very dispersed and non-united in terms of financial needs and priorities in terms of time.

    The mess is as big and as bad as could be!… But a German poem says: where there is danger, rescue is growing. I trust that I don’t have to save the world on my own!…

    Thanks for encouraging me along, Kate!

    Sabine

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