Customers will finally! If they are unable or unwilling to extirpate corporate cultures favoring opaque, self-serving, profiteering behavior, they will lose increasing market share to alternative providers over the coming years. Toggle navigation. Fintech is a media darling. But the average American still knows the neighbor who lost their job and is financially unstable after a long period of unemployment, still drives past foreclosed or unfinished homes, still has to keep up payments on their HomeBanc originated mortgage, still worries about the value of their own home because it is just now this close to no longer being underwater.
The consequences are real to us, we feel we have more than paid the price, but it's very hard for the general public to figure out how bankers have paid their dues. I'm sure there are those who would be wholly satisfied by some form of punishment for the purpose of pure vengeance, but I think the deeper underlying issue is that, as a society, we never got closure from this crisis the way we have in the past.
Bernie Ebbers brought down a Fortune company and will spend 25 years in jail for his hard work on that front, along with his brethren from Enron and Tyco.
Anderson was shut down by the government even if the Supreme Court later reversed the decision -- who remembers that? If you recall the news cycle in the early aughts, we couldn't get enough of these stories, then they came to their natural conclusion and we moved on.
We can't have confidence in something we can't trust, and we can't trust something that appears to take no responsibility for its actions.
Bank stories aren't coming out as fast and furiously as they were in and , but every time a new story does come out, we're reminded that we never had any closure, and it feels like the crisis is still going on. The larger issue still feels systemic rather than bank-specific, and it still feels like unfinished business.
Until the banking industry decides that it can -- or even wants to -- fix its public perception through better PR, improved government relations, or ideally both, individual banks will have to carry the weight.
The only way for these banks to improve their status is to keep doing what works -- improving perceptions one customer, one financial life saving moment, one personal financial dream at a time. Discover a valuable tool for business owners, policymakers and investors to reliably assess companies' potential for growth. Subscribe to the Gallup News brief and real time alerts. Stay up to date with our latest insights.
Seven years after the financial crisis that nearly upended the nation's financial system, Americans' confidence in banks remains low but has improved slightly since If your customers aren't "true believers," your company risks surviving. When free checking took over the banking industry, differentiating on customer service or the "customer experience" came into much greater focus.
Products had become largely commoditized, and banks were anxious to grow their deposits, which generated significant fee revenue and capital for lending. Providers in this market are largely failing to provide compelling value propositions that get consumers past their concerns about security, convenience and practicality.
Ameeta Jain and her co-researchers ask three questions in their research:. On the issues of size of profitability, Jain finds that the return to bank shareholders is about average for Australian companies. Banks are less profitable than telcos, health care companies, and non-bank financial institutions, but more profitable than companies which produce consumer staples, resources or energy.
The work does report that bank returns are more stable over time than those of other sectors, but over the last decade have been consistently in the middle of the pack. Jain speculates that public concern may well be focused on the absolute size of profits rather than on profitability. Size also plays a role in the debate about salaries. Executive salaries appear to be lower than one might expect given the overall salary bills of the banks.
In fact, it is the lowest of the sectors analysed. Relatively the best paid executives are in the energy sector, followed by materials companies. Banks rank last. The result is derived from a regression equation which explains salary by reference to the size, profitability, stock returns and firm risk. This result appears robust as the authors test a number of alternative measures but come up with the same findings. The findings on taxes are even more startling when put in an international context.
Australian banks over the period paid a median tax rate of By comparison Canadian banks paid
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