The Relation between customers and bankers

In this episode, tells the process of financial multi-million pound mis-selling scandal. As the relationship between banks and customers are breaking down, bank should serve for this country not country serve for the bank, therefore, intensify the trust crisis between banks and society. 

After the leader of conservatives Mrs Thatcher reshape the economy, the free market revolution starts, it really brings huge convenient for customers. The bank is a finance institution which support investing and lending, and also bankers sell products to customers. Depends on Cambridge Dictionary a definition of trust that believe in a goodness of a person and won’t hurt you, or saying whether something is safe and reliable should be in a bank.

Following the free banking services, easy credit and paid their way at the centre of the nation’s economy, nine of ten adults have a credit, most of people build their trust in bank. In the UK, the dominant retail market popular with the commercial banks because of the payment system strictly controlled. However, as some bankers now admitted frankly, they abused the trust of their customers in the search for quick profits. About 60,000 small businesses in the UK become the bank mis-selling scandals’ victim, banks sold fixed-rate business loans to protect them to against interest rate changes, nevertheless, bank added a swap secretly which have an adverse impact cause to firms going bankrupt. Banks continued to sell fixed-rate loans prices at around 6%, even though from 2007 a keep falling long-term rate when banks accessed to market data.

Once a customer was signed the agreement of the bank sell these loans on to the derivatives market, where traders would buy the fixed-rate element consolidate by the customer and sell back to the bank at a much lower rate.

The society have a contradictory relationship with banks, hoping the revenue they contribute to banks and technological advances, at the same time feel disappointed at their behavior. We are looking forward this seeking quick profits, the days of abusing consumers trust ends early.