Integrity and Trust for Bankers

Published on February 14, 2020

Mazhar Mahmood Jatoi Follow

Director - Regional Manager at Telenor Microfinance Bank Limited

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Integrity is doing good when no body is seeing and trust is a belief on reliability of someones truth. Both are the valued moral and ethical goods for bankers and banking business. We can say trust and integrity is the blood in the veins of banking business and without it there is no survival. Most of the scandals and crises including current micro finance banks financial crises are blamed on the lack of trust and integrity. If we further discuss the need for trust and integrity in banking, would address questions about what is morally required of bankers and why these requirements arise.

Banking is not only a business it’s a social responsibility and cause to maintain good financial cycle of customers in a good and profitable way. Bankers not only have to maintain the deposits of customer, lend them to fulfill their financial needs but also bankers have to play a positive role to maximize their funds with a best suitable investment and lending products. The features of banking that make it different from other businesses, how they are chartered, governed, regulated, and operated. Being a banker is commonly considered a special role that invites admiration, as well as some suspicion and resentment. And the banking system is generally conceived as both a necessity for an economy and a danger to society. The banking business is custodian of people money, their financial needs.

People don't take their money with them and prefer to deposit them in banks. They manage their financial needs with banks, show their financial worth with bankers to have a better solution for their financial needs. However, they don't discuss many of their financial matters with their blood relatives because they trust on bankers more than their blood relatives and believe that bankers will take care of their funds in a secure and safe way. So its bankers prime social responsibility to take care of not only their funds but also them, don't break their trust and believe and maintain a secure and safe profitable business relationship with them to continue a successful and sustainable banking business.

Since banking cannot be conducted solely by bilateral market contracting but serves an inter mediation function between multiple parties, trust and integrity are requirements. Second, the utility character of banking also creates a need for trust due to the dependence of the economy on banking services. So without integrity and trust there is no concept of banking business and bankers. while in modern banking the role of integrity of bankers increased specially countries like Pakistan where new dynamics of banking is stepping up in a market of huge unbaked population. Most of the people are unaware from traditional dynamics of banking and they going to enter in modern banking thought it is more convenient and user friendly but still there is huge need of trust and integrity to develop a sustainable relationships among the banks, customers and businesses.