Shifting the Focus: Prioritizing Long-Term Gains in Banking and Investment
During my 30 years as a bank employee, I noticed a growing "disconnect" between bankers, their clients, and society. Bankers were increasingly becoming product salesmen rather than custodians, leading to a misalignment of interests between banks and society. Banks have shifted their focus away from local economies and impact investments, instead prioritizing short-term financial gains.
Large banks have lost interest in supporting local wealth creators, focusing on managing existing wealth. Capital flows into less risky, casino-style investments, operated for the rich with money collected from unsuspecting depositors. This shift has hindered the expansion of the middle class and progress in areas like climate change and local economic accelerators.
Despite growing consciousness among savers, investors, and political leaders, only about 15% of investments flow into ESG projects. To effect real change, we need that percentage to surpass 50%. Structural reforms are required in the banking sector to achieve this goal.
A grassroots approach, where like-minded citizens unite to challenge bankers and money managers, can encourage change. The language they understand is money. By leveraging our financial resources, we can influence the system to prioritize long-term gains and support local economies.
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For further reading on shifting focus from short-term gains, check out this authoritative Financial Times article by Sarah Murray, published on February 26, 2021: https://www.ft.com/content/5bc1580d-911e-4fe3-b5b5-d8040f060fe1.