Banks are akin to drug dealers with the only difference being that these institutions peddle credit cards instead of narcotics, a renowned CEO and author claimed.
John Zinkin explained that drug dealers and banks create products that people want and make it easily available.
Banks, he noted, make it very easy to own a credit card, which encourages one to spend more than they should.
“Instead of saying you shouldn’t be taking a credit card because you cannot afford it, they encourage you to take one.
“That is how they make money,” he said at the International Conference on Financial Crime and Terrorism Financing 2016 at the Majestic Hotel here.
Zinkin, who is also managing director of Zinkin Ettinger, said this when speaking on the lack of trust customers had with banks.
Elaborating on the matter, Zinkin, who had previously written a book titled “Rebuilding Trust in Banks: Leadership and Governance in Finance”, said banks have become powerful over the years.
Yet, these institutions no longer believe in giving back to the community and looking after customers.
“Now we are reacting to the destruction of such values. When society realised what banks were doing, they began disliking them.”
Zinkin also claimed that banks have been selling “complicated products” that no one understood as these institutions were pressured by their shareholders to deliver returns.
He said this also led to banks selling things “they should not be selling”, including mortgage securities and credit default services.
“Financial services are called financial services because it is meant to serve the economy but they are not serving the economy but sucking money out of the economy.”