By: JeromeDowney
Recently the Royal Bank of Canada (RBC) suffered a public relations setback with the announcements of the outsourcing of jobs within the banks internal administrative IT division. This type of negative media focus has been prevalent since the 2008 financial crisis for many banks. With record job losses, home foreclosures and the rise of predatory B lending capital there has been no shortage of material for public’s scrutiny. However with that said positive solutions must come out of this financial crisis one way or another. And that is where the concept of social finance as a new financial tool of lending capital has an opportunity to succeed.
A Royal Bank of Canada (RBC) logo is seen at a branch in Toronto. (© Mark Blinch / Reuters/Mark Blinch /REUTERS)
Finance As a Tool of Equity and Growth
The financial service sector has always been an engine of economic growth for North America’s economy. The development of different financial instruments, products, services and credit approval criteria has revolutionized how money is exchanged between consumers and merchants. In Canada our finances have become increasingly digitized. We have online banking, secured/unsecured credit cards, and simple debt cards. We have online equity trading platforms and a verity of other tools that enables the economic flow of capital. However there has been little development on the technology of lending criteria. The big question social finance can help us answer is “How do we value the human element of capital”?