Group B fifth discussion thread

[Admin]

The future of Banking.

Found this discussion site and thought we could discuss the future of banking this week.

Future of Banking

You can discuss anything about the general topic but to get you started read and listen to the thread reliant on credit?

and give me your views on whether young people are reliant on credit and debt.

[Tom Jorigne]

To begin, I want to say : this is a difficult topic.
So, I read the document and heard the different video. I'll speak about the potential learing of financial system for all people. Obviously, It's a great idea, all of knowledge is good to live better but it's a little bit utopic.
however, this debate highlight the necessity for young people to know how manage there money. And i mean this is parent's duty.
We live in an economic world where all derives are possible and a big proportion live above it means allow by the banking system.
To finish, Said El Khadraoui realize a good analyse of the situation when he say that is difficult to teach financial system because we haven't a good overview of the situation.

[Xiangying TONG]

For me, the reason why young Europeans reliant on the credit and debt is that the fewer working opportunities and low wage. From where I stand, the future banking system will focus on the creation of fortune.
For example, launching portfolio of financial products so to attract the youth to finance their expense. Thus give them good habit to diversify their source of income. They can also invest different financial products according to its risk and demand. In that case , they can guarantee the security of fortune and benefits in order to escape from the damage from unexpected situations. That would be less risky and more capital efficiency.

[NEAU Alexandre]

Obviously, this topic speaks mainly of the future of young people and their relationships with banks, debt. It would seem that young people are becoming less and less aware of the money and go into debt early.
The issue of school education is raised in the video repeatedly to explain part of the situation. But I would have liked to talk about education alone, now more and more families into debt to pay TVs instead of offering a better life situation, healthy eating etc ... In the comments man has posted "Off course it Should Be Taught in Schools, so They Will not repeat mistakes we've done."
representing the situation. I understand that the problem is carelessness and ignorance of finance among young people, but I think the problem is deeper than that.

[Yannick KITUTILA]

without the problem of education or family , the Young credit problem is not just an issue of money, but also a problem of mentality.
As a matter of fact, we are in a consumer society where everything produced should be consumed for the economy runs better (creditor and debtor). In fact, the youn credit reflected sometimes that they believe in future of economy because they will be able to repay money they took .
Credits young families and even welcomed by banks, especially early in the year when the European central bank had lowered the key rate to just facilitate banks to give credit to young .they are an excess production that must be consumed for better balance.

Credit youth is also a problem of mentality. somes people say The example comes from above; when you live in a world where all countries (governments) live above their asset for finance economy, it can push us to do the same.

[Baptiste H. The Fabulous.]

Personnaly, I didn't really think about the way we can improve relationship between the bank and his customer. As I only use my bank to keep my money safe.
As I picture young people globally, I suppose the main expectation is to make easier the access of credit. As we hear frequently, many entrepreneurs does'nt get the financial tools as they wish they would.
Concerning the Banks-States relationship. I think that States should not try to be more involved in bank sector and try to regulate more their activities. Directors / Chairmen of the Banks are, for me, way more aware and instructed about the Banking needs and obligations than government. Mainly because specialists doesn't chose to make their career in the public sector.

[JESUS_is_EVERYWHERE]

Only my mind rules....
The credit is not more the nichmarket of the bank. Now a company like SOFINCO can provide you a credit and your bank will doesnt know that you sign a conract with sofinco. This the problem the bank system is invaded by other actor of the finance sector. There too ways to obtain a credit and lot of people of the new generation abuse of this, they dont own the knowledge to visualize the danger to add severals credits.

[Kevin N.]

Like the article said , the question as if we're too reliant on credit and debt is very important these days. Young people have a short-term vision in regards to their view in taking a loan or not . Like someone said during the debate (can't remember his/her name) , risk toward taking a loan should be taught in high school.
With the interest rates applied in some of consumer finance companies we might as well borrow from the Corleone family.
Also i completely agree with Yannick's last sentence.

[Amandine Tiré]

It’s true that behaviors have changed in 50 years; in particular our relationship with money is different compared to our grandparents. For them, it is inconceivable to make a loan to buy a car or any goods. For example in the 60s, my grandparents wanted to buy a TV for 500 francs, at the time it was a quite huge sum, and they have saved during 9 months to get the money and they went to buy their television. The problem is that today who will be waiting nine months to buy a TV?

The society formats us to want everything and immediately. This is the problem of the modes that change so fast, the last fashionable gadget will be replaced within 6 months. It’s so easy to take out a consumer loan and it’s very tempting.

But banks also have a responsibility cause they are advertising and sometimes encourage young people to take out car or consumption loans.

[Quentin Favier]

To the the question "Are young Europeans too reliant on credit and debt?" I think the answer is not fixed. Yes people are globaly reliant on credit and debt, and the youngs are the first affected. But the problem is more global than that. I think people are more irresponsible today than a few years ago, because they necessarily don't have all the knowledge to take the right decisions. The financial world as he is today is far more developed and complex as he was 10 years ago. Like some said before the governments are the first needing to show the example. I think financial education would be a good thing (for the long term) but it would be more effective if Europe tried to be more reasonable themself before.

[Maxence "Starsky" Goumard]

Rather harsh topic as Tom said, so much to say.. I like what Mr El Khadraoui says about the fact that nobody clearly understands the whole financial system, even the bests, it sums up and pictures pretty well how wide & complex the financial world has been evolving. It may seem paradoxical but I think - on the contrary of some of you - our past generations have been progressively learning to be so reliant on debt, loans and all that 'shitty' stuff (micro & macro economically speaking OF COURSE) that younger and future generations have (and will have) to pay the price, as restricted accesses to debt have been set in the past few years, whereas it seems that most of today students and active youngs are pretty much aware of the risks and consequences in taking abuse of loans and so on, but what can they do ? Do you think it's normal for a student to enter the world of work with a credit to repay ? I don't, god bless America. (I'll spare GB on this one, but be sure I'm not even less cynical).
I agree with the idea to teach basic financial education in school, as today the entire world is - to me - ruled more by the financial markets than by elected governments, therefore it's necessary that people, companies and institutions adapt and find their way in managing their finances correctly. It's becoming so easy for people now, as everything is accessible on the website of their banks !
Finally, I'd like to react on what 'The Fabulous' said. I think deregulation has nothing more to prove but I'm not sure States should be the regulators however independant organisations composed by the skillfull specialists he talks about should. By independant I mean from financial markets, lobbies, and any pressures from whoever, which seems completely utopian.
What the hell, we're just humans after all

[stephan coutteau]

This subject is interesting cuz it told us a lot about the current situation of financial matter . Indeed there was a big evolution of financial system since the last decades especialy in bank products but at the same time the information haven t been clear , detailled for customers
What's more the lake of knowledge about finance , or economic in general is really deep , its getting start when we go to university or not if we stopped at first degree
Finally we have to be aware that we are in consumption society where credits are highly required by people to get product as easier as possible , to invest in something ect ..
In my opinion young people aren 't reliant on credit and debts for most of them but they aren't completely responsible ...

[Cyriac Barbot]

In my mind, I think young Europeans are too reliant on credit. It’s just like Amandine says, today we all want everything without waiting for having money to buy it. Anyway, we don’t care about it, it’s too easy to benefit from a credit.

I don’t agree with Yannick when he says that young people are trustful with the future of economy. If they ask for loan, it’s just because they want (and don’t necessary need) money now and they just don’t care about how they will can repay it.

Finally, I think that it is an educational problem but I don’t think that it’s a school job. Parents have to learn to their children the value of the money. Then, school may learn them how the financial system works (I mean just banks, debts, etc...). But as we can see today, we do all we can to make their school life easier, so we are not going to add some matter...

[LIU Bingchuan]

First of All, i don't think that the young generations are much reliant on credit and debt than older generations. I think that the older generation may have less credit then ours. They might runs into debt in older age then we do. But, this is because that our generation can more easily obtain a credits with the development of financial systems. Because actually there's not the banks do the credit things. If the older had got as much as we have, I think they would have been reliant on credit and debt as much as we do.
And in my point of view, nowadays the whole society is built on behavior of consumption. So more we consume, more we can go forward. But sometimes we goes beyond forward then we got crisis. So I believe government will regulate more then what they do nowadays and not too over-regulate to slow economics down.

[Admin]

I think you all handled that difficult topic pretty well. Good Job.

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