Long Day Sin's New Song 'American Made' Tackles Imbalance of Fairness and Profitability in American Financial Services
CAMBRIDGE, Mass., Dec. 4, 2012 /PRNewswire/ -- Consumer credit services in America are seldom associated with fairness. The assumptions are banks cannot make money by being fair to customers and fairness is only possible through government regulations.
"People's perception of financial systems is they're better aligned with institutions than the consumers they serve," observed Samuel Bergson, Director of Marketing at Cause Static Productions.
Christoph Koch, Director of the University of Cambridge Judge Business School, and his colleagues challenged this consumer perception. The group evaluated the lending model of German-based TeamBank and its fairness-based credit system.
TeamBank tells applicants up-front there are no late fees, loan insurance is optional, repayment extensions and support packages are available, and each loan comes with a 30-day retraction period.
German consumers welcomed TeamBank's transparency surrounding its credit lending policies. In 2011, TeamBank reported 7.3 billion Euros ($9.35 billion U.S.) on its balance sheet, an operating profit of 167 million Euros ($214 million U.S.), 17% growth in a mature market, and a delinquency rate much lower than industry average.
Long Day Sin's "American Made" asks why big banks in the U.S. haven't followed in the footsteps of TeamBank's fairness model.
According to Sallie Krawcheck, former president of the Bank of America's Global Wealth and Investment Management division, the problem is governance. Governance allows U.S. banks to manage risk against profitability and until best practices are established, regulations are limited in their effect and fairness takes a back seat to profit.
"TeamBank's case is interesting," noted Bergson. "They didn't need government regulations to tell them that being fair to customers can offer a competitive advantage."
About Long Day Sin
Long Day Sin (http://ldsin.com) is a creative milieu where like-minded musicians share their cultural and musical experiences. The group blends Mediterranean inspired beats with guitars and arduino technology, creating a raw sound fueled by incendiary politics. Some members of the group are musically trained, others self-taught. Long Day Sin musicians describe themselves as musiculptors.
About Cause Static Productions
Cause Static Productions is committed to promoting artists whose music invites and demands involvement. Music serves as a positive tool to promote peace and social change.
For more information contact:
Cause Static Productions
PO Box 400939
Cambridge, MA 02140
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