Bankers: Professionals or Parasites?

Much has been written about the greed, negligence, recklessness, selfishness and foolishness of banks over the past 10 years.  It does not really help that the profession or trade of banking is inherently parasitical (after all banks do lend other people's money and keep the profits for themselves).

My favourite type of bank - photo captured in Taipei

Over that same period of time an "alternative HE provider" (what an ugly term) has arisen - the ifs University College.  Actually the professional body, formerly the Institute (then Chartered Institute) of Bankers has been around for almost 140 years but gained taught degree awarding powers (TDAP) in 2010.

None of the terms: "greedy", "negligent", "reckless", "selfish" or "foolish" can be laid at the door of the ifs University College, however.  It has carved a specialist niche in higher education in Financial Services, educating the next generation of banking professionals and leaders.

I raise this example as it provides an excellent example of segmented competition in niche areas that begins to threaten a poorly understood concept amongst the University elite - the market.

Part of the UK government threat to the cosy clubs of UK Universities (alongside the greater transparency that TEF will bring to Teaching quality) is the expansion of "new (private) universities" to challenge the incumbent providers.  The best Universities will survive this threat comfortably, trading on names and reputations, endowments and unquestioned excellence in research.

The middle ground of UK Universities will begin to tremble, however, as niche areas are targeted by the incomers, key staff focused on teaching and learning will be poached and rewarded (it makes a welcome change to being undervalued and overtaken by "REF Bunnies") and reputations will be harmed as consumer power is unleashed.

As for the rest, the "post 92" Universities that never managed to throw off the perceived yoke of teaching, a new opportunity is presented.  What does the market now value?  What benefits are there in partnerships with the new breed of specialists? What business model will now prevail (after all, the research funding dangled before the many was always illusory).

So, whatever we think of bankers, we can applaud and learn from the example of the ifs University College.