December 10th, 2013
This short film, Transforming Finance, features some of my all time financial heroes including John Kay, Andy Haldane, Victoria Chick, Richard Werner, Catherine Howarth and Giles Andrew
Where did the finance and banking sector go wrong … and what can we do to fix it?
Transforming Finance, a 23-minute documentary film produced by the Finance Innovation Lab, features interviews with a number of the most prominent advocates of change in the world of finance. The film seeks to identify policy interventions to reform the financial system – both through incentives to persuade existing players to mend their ways, and through the promotion of alternative business models (such as peer-to-peer lending and crowdfunding). The Finance Innovation Lab describes the film as both a “manifesto for action” and as a campaign tool, that will act as a catalyst for change.
“What we have is a financial system that has evolved in ways in which it very largely serves itself rather than the needs of the non-financial economy.”
That – the parasitic nature of the current financial system – is the root of the problem. The Finance Innovation Lab, launched in 2008, is backed by the World Wide Fund for Nature and the Institute of Chartered Accountants in England and Wales.
The film makes some very good points but, in my view, falls short. The following three things must also happen if finance is going to be reformed:
(1) More effective regulation
(2) The prosecution of financial criminals
(3) A radical overhaul of auditing
A host of other things also need to change, including politicians ceasing seeing their role as being to protect corrupt banks and bankers, and global structural reforms.
The Finance Innovation Lab’s Charter for a New Financial System has already been signed by a number of advocacy organisations, academics, finance professionals and public interest groups. Click here if you want to add your voice.