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France’s ‘Robin Hood banker’ barred for 5 years

A Frenchman, dubbed the "Robin Hood banker" was barred this week from practicing his profession after he was caught diverting money from certain clients in order to give it to those who had been refused loans. He said he did not want to be seen as "the nasty banker".

France's 'Robin Hood banker' barred for 5 years
“I didn’t want to be seen as ‘the nasty banker.’” Barred from practising for five years, the 'Robin Hood banker' took from some clients, to loan to others. Photo: Grant Fitzgerald/Youtube

A 33-year-old former banker at Banque Populaire was found guilty of “abuse of trust” in the southern city of Grenoble this week, and barred from practising for five years.

His crime? Between October 2010 and February 2011, he diverted a total of €159,000 ($220,000) from several clients’ accounts, in order to give out loans to others whose applications had been refused by his superiors.

“I didn’t want to be seen as ‘the nasty banker'”, he told the court on Tuesday, according to local daily Le Progrès.

That was why, three years ago, the "Robin Hood banker", as he’s been dubbed in some parts of the French media, didn’t have the heart to tell a client that the bank’s management had rejected his application for a €128,000 loan ($177,000).

Instead, he told the customer the loan was his. But when it came time to release the funds, the banker told the court “my back was against the wall.”

Forced to follow through on his claim, the then employee of Banque Populaire des Alpes dipped into the accounts of other clients, without their awareness, in order to make the funds available to the loan applicant.

He repeated the trick on another occasion, dishing out €17,000 ($23,000) of another client's money, in order to give a customer a "loan" to invest in solar energy technology.

The financial institution fired the culprit, from Saint-Martin d’Hères in the Isère department, in 2012 for “lack of rigour,” and subsequently discovered the irregularities in his loan procedures.

The bank’s president explained to the court that his former employee “didn’t derive any [personal] benefit from his actions.” A lawyer for the bank, for his part, noted that all the money concerned was being paid back to the clients involved.

The ex-banker appears to have concluded that finance is not his ‘métier,’ and has begun a career as an ambulance-driver instead, according to Le Progrès.

The ‘Robin Hood banker’ isn’t the only French worker in recent months to be disciplined for refusing to perform his duties, out of a sense of sympathy.

Back in April, The Local reported how a Veolia worker in Avignon was sacked for failing to cut off the water supply of poor families who had fallen behind on their bills.

“I saw people who had nothing, living with their children, who begged me not to cut off the water supply and to give them a little more time to pay up,” he told Europe 1 radio at the time.

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BANKING

Card over cash? Why Germany is seeing a new payment preference

Cash has long been king in Germany, with many smaller retailers refusing to join the rest of the world in adopting contactless payment systems. But card-based payments are on the rise, as recent stats about Girocard use reveal.

Card over cash? Why Germany is seeing a new payment preference

Germany has long been a very cash-based country, occasionally to the dismay of frustrated tourists at the Döner shop.

A few German phrases express the people’s love of physical money. There’s ‘only cash is true’ – Nur Bares ist Wahres. Or Bargeld lacht, literally meaning cash laughs, but used to imply that cash is what’s wanted, similar to ‘cash is king’ in English.

But the classic German preference for cash appears to be evolving, as the use of girocards is growing, even for small transactions.

How are girocards being used?

Girocard, an ATM and debit card service offered by German Banks, was designed to allow customers to use virtually all German ATMs and, increasingly, to make purchases at businesses.

READ ALSO: Ask an expert – Why is cash still so popular in Germany, and is it changing?

Last year, consumers in Germany used their Girocard more often than ever before for cashless payments. A total of €7.48 billion payment transactions with the plastic card were counted – 11.5 percent more than in the previous record year 2022, according to figures published by the Frankfurt-based institution Euro Card Systems.

Whether at the bakery, petrol station or supermarket, customers are increasingly pulling out their cards at the checkout, even for smaller amounts. As a result, the average amount paid with the Girocard fell from €42.34 to €40.69 within a year. 

The rise of card payments in Germany

Contactless payment, which is possible with girocards and credit cards that have an NFC chip, got a boost during the Covid pandemic, as retailers promoted it for hygiene reasons. 

But the use of card payments has continued to grow in Germany since then, boosted partly by the increasing use of girocards.

Promoting the use of girocards, some German banks have expanded their cards’ functions: Sparkassen, Volksbanken, or Raiffeisenbanken offer girocards for the digital wallet, for example.

Banks want to continue upgrading the payment card with further applications. For example, a project is being tested which would add an age verification function to girocards that would be useful when a customer is buying cigarettes.

On the retail side, it’s clear why the Girocard is preferred to other debit options.

“We see that debit cards from international providers cost up to four times more,” Ulrich Binnebößel, Head of the Payment Systems & Logistics Department at the German Retail Association (HDE) told DPA.

What’s the difference between the Girocard and other debit?

The Girocard is a strictly German phenomenon. It can be seen as the latest iteration of the EC card, which was created to consolidate payment systems following the unification of former East and West Germany.

In 1991 different debit card systems, including Eurocheque guarantee cards from former West Germany and Geldkarte ATMs from former East Germany, were unified into Eurocheque cards.

Then in 2001, the Eurocheque system was disbanded, but German banks continued to use the EC logo for “electronic cash’” cards, or EC cards. In 2007, the German Banking Industry Committee introduced Girocard as a common name for electronic cash and the German ATM network.

Girocards are only issued and accepted in Germany, so if you want to get one of your own, you’ll have to join a German bank, and shell out those notorious German banking fees.

READ ALSO: Why it’s almost impossible to find a free bank account in Germany

Alternatively, you can get by with internationally accepted debit cards provided by a bank in your home country, or otherwise by joining an app-based European banking service like N26. 

But be warned, without the Girocard in hand, at some smaller retailers you may be told, “Leider nur Bargeld oder EC-Karte.

With reporting by DPA

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