If you want more bang for your buck gamble it up. The practice is legit, made off first in the US banging and gambling industry which is going down the pipes of disrepute faster than you can say myth or spin. Or faster than even Madoff's wife can get a divorce from him. What else is left to make off? If someone works for the government that person is considered to be a civil servant. Why not call all remaining bankers whose banks were bailed out by the government civil servants too? The irony with civil servant bankers and traders is that their new job status wasn't made up but made off from sitting on a ticking bomb!
http://www.thinkaloo.com
Showing posts with label banking. Show all posts
Showing posts with label banking. Show all posts
Sunday, July 26, 2009
Sunday, July 19, 2009
Set your own credit card spending limits
The banks set the maximum amount of credit you can have but it be nice if they also gave their customers the option to set their own daily weekly or monthly spending limits. It can be offered as an extra service in the customer's online banking account. This way people can have more control over their spending.
http://www.thinkaloo.com
http://www.thinkaloo.com
Thursday, April 9, 2009
Good Relationship Banking
I have been doing some re-reading of a favorite book of mine "Emotional Intelligence" by Daniel Goleman. In one of the chapters it talks about John Gottman, a University of Washington psychologist who has charted the emotional ecology of marriage with such precision that, in one study, he was able to predict which couples seen in his lab would divorce within 3 years with 94% accuracy!!! This is how he does it:
While the couples talk, sensors record the slightest flux in their physiology; a second-by-second analysis of their facial expressions (using the system for reading emotions developed by Paul Ekman) detects the most fleeting and subtle nuance of feeling. The result is akin to an emotional X-ray of the marriage.
What does this have to do with banking you might be thinking. Well, this is my thought.
Although it would be good for all couples to go through such emotional analysis of their relationship/marriage, we can't force people to do it. What we could do is to give every couple a financial incentive to try it.
Set up a new type of bank that grants loans to married couples on the condition that they pass John Gottman's test. If your marriage is proven to have a 94% chance to succeed and doesn't lead to a divorce, it's probably a good chance that the couple will work well with each other to solve out financial difficulties that arise in the future.
I don't mean to suggest that all married couples that stay together will fully repay their loans but the premise is that loans to couples who can stay together and solve their problems in ways that are not destructive can be more reliable.
It's just another metric to add to the decision to grant a loan if you are a bank. I admit it is an unusual practice/metric to add. But if good relationships lead to less loan delinquency and this metric is set as a condition before granting a loan, it will also bring social good in addition to more reliable profits for banks.
In the midst of the worst credit crisis and major scams such as the Madoff scandal, a lot of people talk about going back to the basics of banking, building anew relationships of trust. Investment banking used to be described as relationship banking in the not too distant past. Making loans to couples whose relationship is good can be Good Relationship Banking in the most literal sense of the term.
http://www.thinkaloo.com
While the couples talk, sensors record the slightest flux in their physiology; a second-by-second analysis of their facial expressions (using the system for reading emotions developed by Paul Ekman) detects the most fleeting and subtle nuance of feeling. The result is akin to an emotional X-ray of the marriage.
What does this have to do with banking you might be thinking. Well, this is my thought.
Although it would be good for all couples to go through such emotional analysis of their relationship/marriage, we can't force people to do it. What we could do is to give every couple a financial incentive to try it.
Set up a new type of bank that grants loans to married couples on the condition that they pass John Gottman's test. If your marriage is proven to have a 94% chance to succeed and doesn't lead to a divorce, it's probably a good chance that the couple will work well with each other to solve out financial difficulties that arise in the future.
I don't mean to suggest that all married couples that stay together will fully repay their loans but the premise is that loans to couples who can stay together and solve their problems in ways that are not destructive can be more reliable.
It's just another metric to add to the decision to grant a loan if you are a bank. I admit it is an unusual practice/metric to add. But if good relationships lead to less loan delinquency and this metric is set as a condition before granting a loan, it will also bring social good in addition to more reliable profits for banks.
In the midst of the worst credit crisis and major scams such as the Madoff scandal, a lot of people talk about going back to the basics of banking, building anew relationships of trust. Investment banking used to be described as relationship banking in the not too distant past. Making loans to couples whose relationship is good can be Good Relationship Banking in the most literal sense of the term.
http://www.thinkaloo.com
Subscribe to:
Posts (Atom)
