After graduation, my first job was as a procurement manager in a manufacturing company. My supervisor was a mechanical engineer, and I was procuring spare parts for the plant and machinery, as well as other miscellaneous items used in a typical factory environment: from electrodes to car batteries to solder irons to overalls to spades to pencils to curtains. You name them, I bought them. The list of vendors was in my head, and anytime a requisition came in, I already had the list of potential vendors at the tip of my fingers.

Now, the job of a procurement officer has its advantages. Everyone in the market knows you, especially in a small place like the industrial towns in Bhutan- some by your voice, because you have called them so many times, and some by face. Since I was involved in procuring anything the people in the factory wanted, I was on first-name terms with every local shopkeeper. In fact, most of them wanted to curry favors with me- expecting some big order to cross their hands someday. In their eyes, I was a VIP!

Now, after becoming a banker, I realize I had a very bad start to my career! Of course, who knew that I would enter the field of banking- but a procurement manager as an entry point? What does it teach you? Or rather, what does it tell you?

Let me clarify.

Many of us probably know that a few regulatory agencies have their eyes permanently set on the procurement departments of all organizations in Bhutan as the root of corruption. I know why. It is purely because, as a procurement official, you have all the negotiating power. You have all the power – to corrupt people and to be corrupt. You are the insider for the outsiders. Given the chance, you mint money left and right. Unless you absolutely follow the path of righteousness and decide that that is the only path for your future.

And there are distractions galore, always. You enter into a clothing store to buy a set of curtains for your house, and you get the best bolt of cloth at almost zero cost. Think of buying a fridge, and you get one double the size at half the cost. Car repairs? Free- except for that cup of tea you give to the mechanic under the hood. Filling up your car? OK, gratis. Thinking of buying X? You will get Y- which is the better version of X, at a dirt-cheap price. And neither you nor the seller talk of discounts- it just happens. You are living in a world altogether different from reality. Your salary- 100% saved. What does it teach you about integrity and honesty? Zilch. Zero. Nada.

It got boring after a while. At least to me. I started hating taking a walk in town. There was no anonymity at all. 25 years before COVID-19 came, I was thinking of face masks when walking back home from office.

So I jumped. I mean, job-hopped. Looked for a job, got one in a Bank, and jumped.

I am sure, at the back of my mind I must have been thinking- I will be working in a bank, and getting a lot of money for myself. I had seen bank-tellers counting mounds of money. In my naivety, I am sure the thought of putting a portion of it into my pocket crossed my mind.

Well, the wake-up was rude. The first word that I heard during my induction was integrity. The second was honesty. What these two words actually mean is best explained with an example: You work your ass off the full day in the bank, counting and recounting cash, making sure all the entries are tallied up to two decimals. If you find out that there is an excess (or shortage) of Nu. 0.01 in your day’s tally, you start from the beginning and re-tally everything again, until you find the difference to the t and resolve it. Basically, it means, none of the figures are yours, boy, none. Open the books, tally it, close it. Repeat. Repeat the next day. And the next.

That’s honesty. And Integrity. Making no claim to what is not rightfully yours, giving no inch if it isn’t theirs. Take nothing that is not yours, give nothing that is not theirs. Including bullshit. And, stick by it. That’s about it.

The official definition of Integrity is: the unwavering adherence to ethical principles, honesty, and fairness in all banking operations. It encompasses all of the following and many more: Trustworthiness, Honesty, Fairness, Transparency, Accountability and Compliance.

Why, you say?

Integrity, a concept often lauded in abstract terms, is the bedrock upon which the entire banking industry is built. It is not merely a buzzword or a corporate slogan; it is the lifeblood that courses through the veins of a financial institution, determining its character, reputation, and ultimately, its survival. In a world where trust is a scarce commodity, banks, being custodians of public funds, bear an even greater responsibility to uphold the highest standards of integrity.

It is all about adhering to strong moral and ethical principles, even when faced with pressure or temptation. It is about being truthful, transparent, and accountable in all dealings. It is about placing the interests of customers above personal gain. It is about adhering to ethical principles even when faced with immense pressure to compromise. When a bank operates with integrity, it fosters a culture of trust, where customers feel confident in entrusting their hard-earned money. This trust is the cornerstone of any successful banking relationship. It is the intangible asset that differentiates a good bank from a great one.

Integrity in banking is not confined to the relationship with customers. It extends to all stakeholders, including employees, shareholders, and the community. Treating employees fairly, respecting their rights, and providing a safe and inclusive work environment is essential for fostering a culture of integrity. Engaging with shareholders transparently, providing accurate financial information, and prioritizing long-term value creation over short-term gains are crucial for building trust. Supporting the community through corporate social responsibility initiatives demonstrates a bank’s commitment to ethical business practices and its role as a responsible corporate citizen.

Integrity in banking is also closely linked to risk management. A bank that operates with integrity is more likely to identify and mitigate risks effectively. It is less likely to engage in reckless lending practices or engage in speculative activities that could jeopardize its financial stability. A strong risk management framework, coupled with a culture of integrity, can help banks withstand economic downturns and emerge stronger.

What I am trying to say is this:

Integrity is not just a desirable quality in banking; it is an imperative. It is the foundation upon which sustainable growth and long-term success are built. By upholding the highest standards of integrity, banks can retain the trust of the public and contribute to the overall well-being of society. It is a journey that requires constant vigilance, commitment, and a relentless pursuit of excellence.

Why does Integrity matter in Banking?

• Trust: Customers entrust banks with their hard-earned money. Integrity ensures this trust is not breached.
• Reputation: A bank’s reputation is its most valuable asset. Integrity protects and enhances this reputation.
• Legal Compliance: Many banking regulations are in place to uphold integrity. Non-compliance can lead to severe penalties. Non-compliance is usually a result of someone in the bank not having enough integrity.
• Long-Term Sustainability: A bank built on integrity is more likely to survive and thrive in the long run.

The consequences of a lack of integrity in banking can be devastating; It can lead to financial crises, loss of public trust, and damage to the economy as a whole. The scandals that have rocked the banking industry in recent years highlight the importance of prioritizing integrity.

Did I hear someone whispering Nick Leeson? He expedited the collapse of the Barings Bank- because of his lack of integrity. There are many such cases of people who tried to become rich by taking a shortcut. But you always get caught in the end. Therefore, integrity and honesty is something you should always keep at the back of your mind- not just if you are working in a bank, but anywhere.

Here are some pointers where integrity shines in a banking environment:

• Ethical Decision Making: Making choices aligned with the bank’s values and adhering to legal and regulatory frameworks.
• Customer Trust: Building strong relationships based on honesty, transparency, and reliability.
• Financial Transparency: Ensuring accurate and honest financial reporting and disclosures.
• Conflict of Interest Management: Avoiding situations where personal interests could compromise professional judgment.
• Data Privacy and Security: Protecting sensitive customer information and preventing data breaches.
• Compliance Adherence: Strictly following internal policies and external regulations.

How do we excel in Integrity then?

To excel in integrity within a bank, we can:

• Lead by Example: Demonstrate high ethical standards in every interaction. Irrespective of what sort of position you are in.
• Continuous Learning: Stay updated about ethical guidelines and industry best practices.
• Open Communication: A culture of honesty and transparency within the team really helps!
• Strong Values: Align your personal values with the bank’s ethical framework.
• Risk Awareness: Make sure you identify potential ethical risks and take proactive measures. Or at least report it to your supervisor!
• Reporting Wrongdoing: Encourage a culture where ethical concerns are reported without fear of retaliation.

By upholding integrity, banks contribute to a stable and reliable financial system that benefits everyone.

And it goes a long way for you. Since it is all about aligning your actions with your values, even when it’s difficult, it actually helps you in many ways:

• First and foremost, it increases self-respect: Living with integrity means honoring your own values. This boosts self-esteem and creates a sense of inner peace.
• It helps build trust: People are more likely to trust someone with integrity. This trust fosters strong relationships, both personally and professionally.
• It improves reputation: People with integrity are respected and admired. A good reputation opens doors to opportunities and strengthens your social standing.
• It fosters ethical behavior: Integrity encourages you to do the right thing, even when it’s challenging. When you do anything ethically, it actually rubs off on someone else. And this contributes to a more just and ethical society.
• It enhances your decision-making ability: Integrity acts as a moral compass, guiding you towards choices that align with your values. This makes decision-making easier and reduces the likelihood of regrets.
• And, ultimately, it leads to long-term success! While short-term gains might be tempting, integrity leads to sustainable success built on solid foundations.

Remember, integrity isn’t about perfection. It’s about striving to be your best self and owning up to mistakes when you fall short. Try it. You will never regret being honest and being called as the one with a good reputation.

Contributed by:
Mr. Hem Kumar Acharya
Director, Banking Operations