Bank Culture Must Change Before Public Can Trust

Aug 27, 2015

Even though the economy is on the rise, U.S. banks have been forced to look at their culture. The banking system is not rebounding as it should. Many attribute this to the failure of post-crash financial reforms to mend the defective cultures of banks. Honestly, banks won’t be able to make appropriate adjustments unless they’re trusted. A bank’s reputational capital can affect the wider economy and the bank’s long term success.

A recent study by the Group of Thirty investigated how bank cultures have been affected by cries for cultural reform. They discovered that banking cultures are not really pushing passed the high standards of integrity that the government and public have called for.

There is the issue of spouting a principle but not living by it. It’s not that banks don’t understand the concept of reputational capital, it’s just that management often treats efforts to restore the public’s trust as separate or secondary to their main jobs. Whenever a large amount of money is a stake, for example, many banks still sink back to shady or less than revealing practices.

Living the principle begins with managers and CEOs setting up systems to monitor dishonest behavior or practices especially by upper management. If they find behavior that could jeopardize the bank’s reputation, those guilty should be punished consistently and publicly to discourage others.

The report mentions that oversight is very important as well. Banks must have both regulation and supervision in order to keep banks on the straight and narrow. But while culture is impossible to completely regulate, it can be monitored and guided. In the end culture is about behavior and behavior cannot truly be corrected by regulations or legislation. Instead, regulations must be imbedded into the daily culture of banks, monitored, and transgressions dealt with immediately in order to change the American bank’s DNA. is America’s leading high risk payment processor. Their experts are not large bank representatives and engage in fair, transparent practices designed to make your business grow. We specialize in providing business funding for small businesses, and don’t succeed unless you do.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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