The banking industry needs to be transformed in order to save it from itself. Despite the protestations of governments, regulators, public and the media that change can only come from within (spare us another thousand useless regulations). Here is how it should be done.
Another banking scandal, another inquiry, another band-aid and so we will continue until the next scandal, another inquiry and another band-aid. It is a depressingly familiar sequence of events.
The problem is that while governments, politicians and regulators are beginning to realize that transforming banks is about values and culture they still believe that that transformation can be legislated and/or regulated.
This blog has stated several times that transforming the industry can only be accomplished from within and that it must recognize the human issues and behaviors involved. The plan below consists of a series of assertions, 9 in total, as well as the rationale for these assertions.
The proposed transformation is comprehensive in that it covers every aspect of the human ecosystem within which banks operate; managers, employees, customers, suppliers and the wider community, the environment within which they operate and the behaviors which motivate them.
This is why the transformation is described as a human transformation and the transformed entity is known as The Human Asset Bank. This is what banks must do and preferably sooner rather than later.