10. Every innovation in the financial sector has purportedly the same theme – of the consumer, for the consumer, by the consumer. However, in reality, most financial innovations invariably border on regulatory arbitrage, accounting arbitrage and tax avoidance. An important litmus test for every financial innovation must be the contribution such an innovation makes to the real economy and ultimately, to the society.
Though the global financial system has witnessed crises, one after the other in quick succession, our learnings from each crisis have been short-lived. The imperative need for customer centricity and adherence to standards has often been recognized, but has been lost in the rush for short term business gains. Let me give some common examples of unfair treatment to customers: 11.