Business Models for Responsible Banking – A Trend Towards More Humanistic Banking?

28 Pages Posted: 16 Nov 2014 Last revised: 1 Dec 2014

See all articles by Michael Pirson

Michael Pirson

Fordham University - Gabelli School of Business; Humanistic Management Network; Harvard University

Date Written: November 14, 2014

Abstract

Given the mounting criticism of the banking sector as corrosive to society, this article is presenting an overview of business models in the banking sector that can reconnect financial services with common good creation. We sketch out two basic paradigms informing banking practice: the economistic paradigm focusing on profit maximization and the humanistic one, serving the common good. We then highlight paradigmatic cases to explore how each of these business models fared during the natural experiment of the financial crisis. We conclude by providing lessons learned for better banking.

Keywords: Paradigms, Economistic, Humanistic, Banking, Business Models

JEL Classification: J00, L00, M00

Suggested Citation

Pirson, Michael, Business Models for Responsible Banking – A Trend Towards More Humanistic Banking? (November 14, 2014). Humanistic Management Network, Research Paper Series No. 2524572, Fordham University Schools of Business Research Paper No. 2524572, Available at SSRN: https://ssrn.com/abstract=2524572 or http://dx.doi.org/10.2139/ssrn.2524572

Michael Pirson (Contact Author)

Fordham University - Gabelli School of Business ( email )

140 West 62nd Street
New York, NY 10018
United States

Humanistic Management Network ( email )

St. Gallen
Switzerland

Harvard University

1875 Cambridge Street
Cambridge, MA 02138
United States

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