• iWrite

Bizarre market policies of the banking system are wrong



Closing branches and applying the internet usage

The age of technology and visual effects is leading companies to new practical applications in the marketing field. Provided services and the actual production play a secondary role in the game of utilizing the purchasing power. Consumers are segmented and categorized to meet their needs by banks, in order to make the most of each one's capital. The role of the citizen needs to be filled first by the shallow desires of the micro-investor in a sticky effort for more and more.


Revenue stability and adequate dividend returns are already the only strategic choices of companies, especially banks, for their growth. And when we say growth, it means sustainability, a reasonable reason to continue to exist and do what it does. Even if this means the complete digitalization of the branches and the closure of the bank's central branches.


For some reason, banks have taken the role of money multiplier; they constantly work on increasing common capital, corporate income, etc. in order to expand their applications and presence even if they aim for nothing. The psychological attraction to such models has its side effects in the daily absurdity of the stock market, like the annual political announcements of economic progress.


They need to reconsider their physical branch operation in cities and villages

The dynamic virtual presence of banks in the stock market is something that should concern us, despite their necessity in our everyday transactions. Despite their superficial contribution to the banking service sector, the banking system in my opinion had to separate partially its digital function from its physical operation and in-store service. Instead of that, shareholders chose to focus solely on the electronic form of banking services to maximize dividends and reduce operating costs.


In the argument in favor of this decision, there is nowhere mention of their community impact, other than philanthropic action, nor the quality development of their services in the future. Consequently, the short-term benefits do not reflect the progress of the real economy on the planet, and over time the current advantages will disappear from the very economic evolution. This is a conservative management which is the best for synchronizing technology and entrepreneurship, but it remains a dead-end effort with no result at bottom.

Under certain conditions, banks retain their credibility only in the political world, because it's difficult to give an alternative to the market by the state or anyone else.

The current unreliability of banking activities in the market should be taken seriously by bankers. Market dominance by the banks has no value and the portion size of total profits is questionable whether it ultimately helps the stability of business operations or simply prioritizes the bank itself in case of state aid to avoid bankruptcy. But the crisis environment is about the real environment from now on because a lot has happened, a lot of changes have been made at every level and all of that now needs to be digested in time. Let's have patience and steady goals away from increased yields so we can survive and continue energetically the next day whenever it is.