A Banker's Reflection

Ever stopped in the midst of work one day and reflect on the meaning of our job? How does it add value to society? Is it a function of life?

Being in the midst of this unprecedented credit crisis, I can't help but question the validity of my job. Have we bankers lost all sense of morality in the craze for sales and dough? One caveat. When I mention bankers, I refer to the sales people. In my short 3 years, I have witnessed far too many misrepresentations and incompetencies. It could be generalizing on my part, but safe to say that our beloved regulator, MAS has been sitting on the sidelines for way too long. The way bankers are remunerated needs to be changed. The way how bankers are motivated only by the carrot is preposterous. With the ridiculous targets thrown, what kind of personal relationship do you expect to cultivate with the clients?

Treat this banking crisis as a blessing in disguise, re structure, rebuild the respect and professionalism into the profession. On a personal note, I hope that there are more fee based independnt financial advisors out there. I even salute those who give financial advice and charge by the hour, just like how lawyers or doctors do. We need more professional financial practioners like that. If developed countries in the US, UK and Australia are practising it, I don't see why Singapore cannot follow suit. It all balls down to the consumer, and the regulators. First, the consumer must see the value in seeking such advise. Now that the financial Tsunami has occured, it is hopeful to think that most clients treat investments more seriously, and not some sure win game of chance. On the other hand, the regulators need to tighten its belts on bad practices among the financial institutions, especially the banks and raise the qualification and competency level of the practitioners. This is the way forward, especially if Singapore wants to be a financial hub in the coming decade.

I really question the need for a bank to segmentize itself into mass, emerging affluent and high net worth. Well, of course the simple rationale is for profit maximising, stakeholders satisfaction, blah blah. But if we look at in from another angle, from my perspective as a Relationship Manager in a bank, why should a poor man's money be any different from a rich man's one? Why is it that the high net worth category of customers get all the pampering, aesthetics, and most importantly better banking products? I'm just jaded to a certain extend. I understand that its all the effect of capitalism, elitism, which can be clearly witnessed from this little island of ours.