{"id":3563,"date":"2022-11-09T10:06:58","date_gmt":"2022-11-09T09:06:58","guid":{"rendered":"https:\/\/insights.ieseg.fr\/?p=3563"},"modified":"2024-04-04T11:00:54","modified_gmt":"2024-04-04T09:00:54","slug":"the-banking-system-and-the-role-of-trust","status":"publish","type":"post","link":"https:\/\/insights.ieseg.fr\/en\/resource-center\/the-banking-system-and-the-role-of-trust\/","title":{"rendered":"The banking system and the role of trust"},"content":{"rendered":"\n

What role does trust play in the relationship between the French and their banks? J\u00e9r\u00e9mie Bertrand<\/a>, professor of finance at I\u00c9SEG<\/a>, takes stock of the situation.<\/p>\n\n\n\n

Why is trust important in the banking system?<\/h3>\n\n\n\n

Confidence is essential because we are dealing with their core business: asset transformation. A bank will transform short term deposits, which we want to be able to dispose of when needed and without risk, into long term loans, carrying a higher risk. The bank\u2019s role is to provide loans to its customers while at the same time minimising the risks it shoulders, and to do this it must assess the borrower\u2019s profile as best it can. <\/p>\n\n\n\n

This assessment is made using the information that one transmits to one\u2019s bank. Now, this information is of two main types: quantitative data, our salary for example, which is rather simple to analyse, and qualitative analyses, our motivations, which are much more complex to obtain, but much more reliable for the analysis. Thus, qualitative information allows the bank to make a better analysis of its clients, but in order to obtain this, it is necessary to develop an important element: the trust between the client and the bank.<\/p>\n\n\n\n

Read the full interview <\/strong>in the latest edition of Change Magazine:<\/p>\n\n\n\n

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