We are now in a new era of uncertainty, created by the global financial crisis. However this crisis does present an opportunity for financial institutions to act in a different way and to put customers back at the centre of what they do, according to Mick McAteer, Director, the Financial Inclusion Centre, speaking at the Friends First Business Symposium in Dublin on Thurs 11th March.
Mr. McAteer, a UK consumer champion, told delegates that new financial models are needed so that there can be financial inclusion for all and so that consumers can start to trust financial institutions again. He added that there is also an onus on Government and policymakers to ensure that consumers core financial needs can be met.
“People at all levels of society have basic financial rights and these include the right to have access to a functioning bank account, affordable credit, sufficient insurance to protect against risks and shocks, sufficient pension provision and fair affordable mortgages. There is now an opportunity for policy makers and financial institutions to come together to ensure that these needs can be met.”
Speaking at the conference, which addressed the subject of ‘Rebuilding Confidence Together’, Adrian Hegarty, Chief Executive of Friends First, said: “There is an industry wide recognition that the old model and the old guarantees of pension provision are no longer sustainable. The publication of the National Pensions Framework acknowledges this and is a step in the right direction. There is a now recognition that there is a shared responsibility around future pension provision and we welcome the idea of compulsory pension provision. However, much greater clarity is needed as to how and when the recommendations of the NPF will be put in place.
"Brokers and Life Companies must now accept that the traditional model is broken and we simply must now work together to establish a viable business model going forward that captures all our concerns and above all sets about building greater trust with our customers,” he added.
Addressing the conference, Jim Power, Chief Economist of Friends First told delegates that if Ireland Inc. can sort out its public finances, its banking sector and deliver a social partnership approach which address competitiveness and productivity than a sustainable economic model for future growth can be put in place. However he said that the growth drivers of the past are not sustainable and that any future economic model must be based on tourism, agriculture, the multinational sector and the knowledge economy – the Government’s role is to facilitate and create the correct environment for future growth in these sectors.
Jim O’Hara, General Manager of Intel Ireland added: “Most of us in business in Ireland have made some very tough decisions in the past year. To survive in the current climate businesses must understand where they are, make the tough decisions and get on with it. We are all well capable of trading our way out of the current difficulties if we understand our businesses, understand our customers and rebuild confidence together"
Speaking at the Business Symposium were: Jim Power, Chief Economist, Friends First, Mick McAteer, Chief Executive, The Financial Inclusion Centre and Jim O'Hara, General Manager, Intel Ireland.
