Frances Coppola shows why the banking crisis is not limited to the "fancy" stuff. Ordinary "plain vanilla" banking is also a shambles if HBOS is at all representative.
Professional management of customers' money was completely lost in the drive to sell products.Coppola Comment
So the final lesson for today is that there needs to be a fundamental rethink of the nature of retail banking and the core skills required. Professional investment management and risk management skills need to be at the heart of retail banking just as much as other areas of the financial industry. And this change must come from within. Regulators may be able to curb the worst excesses, but they cannot fix the underlying cultural problems. Retail banks must stop "selling" and start "serving". Until they do, there will continue to be major failures in retail banking.
Something's rotten in retail banking
Frances Coppola
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