Business Models for Responsible Banking – A Trend Towards More Humanistic Banking?
Humanistic Management Network, Research Paper Series No. 2524572
Fordham University Schools of Business Research Paper No. 2524572
28 Pages Posted: 16 Nov 2014 Last revised: 1 Dec 2014
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: Suggested Citation