Introduction to Financial Institutions

Discuss about the Bank of Cancer Research.

The Bank of Cancer Research (BCR) is a bank that is dedicated to funding research based on cancer in a bid to address the pervasiveness of the condition. The model of this ideology is based on the fact that banks make substantial profits out of the investment opportunities available in the modern world. According to the founder of this model, Aaron March, the banking profits in the United States to an extent of funding cancer research and treatment. To this end, the idea of Bank of Cancer Research was born. I agree with March’s idea of helping out people based on the available investment opportunities. The Bank of Cancer Research is a noble idea that has helped thousands of cancer patients. The theory behind this model can be categorized into three elements which include purpose entity, product differentiation, and consumer choice. The BCR’s categorization, from an n economic perspective, is special purpose entity. In this case, BCR can be termed as a not-for-profit entity that has a special aim of funding a particular cause (Choi et al., 2014). Nonetheless, BCR tends to work as both a not-for-profit and for profit organization. For instance, the cause-related marketing strategy adopted by the organization places it in a situation whereby there must be a concerted effort to fund a cause.

It is paramount to mention that financial institutions are firms dealing with financial transactions such as loans, investments, deposits, and currency exchange among others (Madura, 2015). Some of the innovative forms of financial institutions include investment banks, credit unions, insurance firms, and commercial banks. On the other hand, a financial transaction is an agreement between a buyer and a seller involving asset exchange for a particular payment (Madura, 2015). To this end, commercial banks offer various financial transactions such as taking deposits and issuing loans to clients. Commercial banks take deposits from customers; thus, providing sufficient financial backing for lending money (Madura, 2015). The issuance of loans can be on an individual or corporate level. Further, commercial banks offer other financial services such as currency exchange transactions at the prevailing market currency rates. On the other hand, insurance companies offer financial protection against loss or uncertainty. Over the years, insurance firms have evolved into a social device managing risk of property and life (Madura, 2015). The crux of the concept is to collect premiums from customers who want to protect themselves from hazards such as fire, road accidents, and death among others.

Commercial Banks and Financial Transactions

A financial transaction involves the exchange of property for payment or on credit (Madura, 2015). In a financial transaction, a buyer is usually interested in a property being disposed of by the seller. After agreeing on the price, the exchange of property for the payment is usually accompanied by a receipt. Furthermore, individuals have to trust financial institutions with their money in order to promote further financial endeavors. Financial institutions have played an indispensable role in the growth and development of the economy. Therefore, it is vital for the government and other relevant stakeholders to protect these financial institutions to promote financial stability. 

I believe that the society can do much more with the purpose of saving thousands of lives and prevent further cancer diagnosis. In this case, through “The Giving Pledge”, the BCR aims to promote better health care for cancer patients and facilitate research that will pave the way for advanced cancer treatment options (Gonzalez-Angulo et al., 2011). The BCR works in a way that everyone is better off and that the society plays a vital role in ensuring that people with cancer get the required treatment. It is vital to mention that the model of BCR works in way that everyone is an active participant in the main accomplishing the main agenda (Gonzalez-Angulo et al., 2011). However, there have been some misunderstandings regarding how the operations of the bank take place. For instance, the bank is classified a special purpose entity though some of its operations are clearly inclined to the for-profit business organizations.   

Furthermore, it raises concerns about how the organization’s profits spread throughput the financial needs of the bank. For instance, in a simple business organization, the differentiation of profits depends on the pressing needs of the company. As Varadarajan and Menon (1988) assert, marketers use the four ‘P’s’ to differentiate their products and services. In this case, the marketer will consider the product, price, place, and promotion (Klomp et al., 2011). First and foremost, there is a critical need to understand the type of product to be unleashed to the market. The organization ought to understand the market by conducting adequate research in order to establish the appropriate product that will meet the customers’ demands and preference. In this case, the BCR has delved into solving the issue of cancer in the society through a funding strategy.

On the other hand, the product’s price is another determinant of how an organization will fair in the market. For instance, understanding the pricing of a product will play a vital role in luring customers into buying the respective products or services. In this case, the BCR has offered its customers a noble cause to bank with them. For instance, despite having the knowledge that the BCR helps cancer, the bank has also offered a comfortable interest rate for everyone (Cancer Genome Atlas Research Network, 2014). The promotion of the bank’s services tends to contradict its not-for-profit agenda since it is inclined more on the for-profit side. The promotion aspect of marketing involves elements such as advertising, social media, public relations among others. Therefore, it is clear that the involvement of promotion aspect in BCR’s agenda will contradict its primary objective (Gonzalez-Angulo et al., 2011). Finally, there is the issue of the appropriate place whereby the organization has to figure out a particular place or media through which it can sale its products. In this instance, the BCR is determined to focus on the society to help in funding the project. As people bank with BCR, they will be contributing and facilitating the achievement of the key goal of the organization. As a result, it is noteworthy to mention the fact that the back of the BCR lays on the goodwill of the people and their investment in the bank.

Insurance Firms and Financial Protection

I also believe that the project is sustainable since as long as people bank with the BCR, there will always be funds available for funding cancer research and treatment procedures. This model is a long-term strategy aimed at addressing the needs of the ailing people, especially cancer patients. However, the chosen model of a bank has its own demerits based on various economic and financial aspects. As Yeates (2017) claims, the Australian banks have had a high reputation of making high profits over the years. Moreover, banks have a strong potential to convert their accounting profits into cash profits thus a suitable path of making funds for cancer research and treatment. Research studies have indicated that banking services have become indispensable in the modern word as consumers seek different products and services in the system (Levine & Cancer Genome Atlas Research Network, 2013).

The campaign objectives of the model have faced a couple of challenges that might hinder the progress of the entire strategy. For instance, there is a need to ensure that there is adequate awareness of the public to facilitate the running of the project. The society has the onus to understand the ideology and model behind the BCR. Through “The Giving Pledge” group, the BCR intends to raise adequate capital from its members such as Warren Buffet and Bill Gates among others (Zhang et al., 2011). To this end, the society needs to be aware of such a cause in order to offer full support and ensure that cancer research and treatment programs are supported. Moreover, this ideology will set clearly the intended cause, beneficiaries, among other key players in the model.

On the other hand it is vital to understand various aspects of cancer such as the associated risk factors, causes, and how the society can help prevent this health condition. In this case, cancer is a leading health hazard that has caused loss of thousands of people while others undergo treatment. It is important for people to understand the risk factors of cancer and how to go about the treatment. Smoking is a habit that can result in life-threatening health conditions such as cancer among other ailments. Therefore, it is usually advisable to quit smoking in order to prevent complications. Therefore, health care providers ought to espouse certain counseling techniques which are non-judgmental and do not result in stigmatization (Booms & Bitner, 1981). Health promotion can be described as the procedures involved in ensuring that people have enhanced and increased control over their health status.

Challenges and Importance of Financial Stability

Theoretical underpinnings in health promotion programs are vital in ensuring conformity with the current healthcare practices. For instance, health care providers ought to embrace and appreciate the concepts of social, cultural, environment, economic, and political influence on promoting healthcare (Onaran, 2017). The existence of theories and models that support health promotion practices is vital since it helps prevent certain health problems and conditions. Health care providers use these theories and models in program planning to understand the implementation of various behavioural strategies helpful in preventing diseases. Firstly, the behavioural theories help predict an individual’s health behaviour through observing their attitude and demeanor ((Varadarajan & Menon, 1988). They are crucial and play a fundamental role in explaining why individuals do or do not conduct themselves in a certain healthy way.

Jean Watson’s theory of caring asserts that health care providers have the onus to promote better health by addressing health problems (Haug et al., 2013). The primary aim of a health promotion strategy is to ensure that individuals improve and have control over their health condition. Therefore, health promotion actions tend to bolster good health and well-being of individuals. A successful health promotion program or campaign ought to espouse a multi-level strategy. To this end, it should aim at addressing different people at various levels. Another component of successful health promotion is the environment surrounding the respective individual. In this case, it can be either social or physical environment. The social environment entails changing the atmosphere that can impact other people (Yeates, 2017). For instance, it is important to ensure that people do not smoke in public places since it will affect the larger population.

This element of health promotion entails creating awareness on a certain health problem. For instance, it can encompass campaigns and educative programs that teach the society on the risk factors, symptoms, and how to prevent illness and medical complications (Browning & Zupan, 2014). It is, therefore, necessary to choose a target group that is highly susceptible to the respective health condition and try to resolve the perceived health problems. This will help address the prevailing challenges that the particular group faces in achieving better health and well-being. Motivation is one of the indispensable factors that individuals ought to integrate into their quest for better health and well-being (Sherman et al., 2012).  For instance, a pregnant mother may be motivated by the fact that if she quits smoking, the newborn will be healthier. On the contrary, if she does not quit smoking, she risks her life and that of the unborn child. Most of the highlighted theories and models pertain personal, social, and environmental factors. People have the potential to change their behaviours if they are intrinsically motivated. This implies that individuals can choose to live a better and healthy lifestyle by quitting smoking, for their own satisfaction and interests. On the other hand, social behaviour can have either good or bad influence on an individual.

A Charitable Campaign for Cancer Research Funding

In conclusion, I believe that the pervasiveness of cancer is a major cause for swift measures to ensure that the issue is addressed effectively. One of these measures includes funding of research and development programs that are aimed at reducing the widespread of cancer and its comorbidity. The society has a major play in ensuring that there are adequate resources and services for people with cancer. Therefore, educating the mass population on how to go about the issue of cancer and focusing on funding channels will help in alleviating the impacts of cancer not only in the United Stated but around the world.

References

Booms, B. & Bitner, M. 1981. “Marketing Strategies and Organizational Structures for Service Firms.” in James H. Donnelly and William R. George, eds. Marketing of Services. Chicago: American Marketing Association, 47-51.

Browning, E. & Zupan, M. 2014. Microeconomics: Theory and Applications, 12th Ed. ISBN: 978-1-118-75887-8.

Cancer Genome Atlas Research Network. (2014). Comprehensive molecular characterization of gastric adenocarcinoma. Nature, 513(7517), 202.

Choi, W., Porten, S., Kim, S., Willis, D., Plimack, E. R., Hoffman-Censits, J., & Melquist, J. (2014). Identification of distinct basal and luminal subtypes of muscle-invasive bladder cancer with different sensitivities to frontline chemotherapy. Cancer cell, 25(2), 152-165.

Gonzalez-Angulo, A. M., Timms, K. M., Liu, S., Chen, H., Litton, J. K., Potter, J., & Hortobagyi, G. N. (2011). Incidence and outcome of BRCA mutations in unselected patients with triple receptor-negative breast cancer. Clinical Cancer Research, 17(5), 1082-1089.

Haug, S., Schaub, M. P., Venzin, V., Meyer, C., & John, U. (2013). Efficacy of a text message-based smoking cessation intervention for young people: a cluster randomized controlled trial. Journal of medical Internet research, 15(8).

Klomp, D. W., Van de Bank, B. L., Raaijmakers, A., Korteweg, M. A., Possanzini, C., Boer, V. O., & Luijten, P. R. (2011). 31P MRSI and 1H MRS at 7 T: initial results in human breast cancer. NMR in Biomedicine, 24(10), 1337-1342.

Lee, N. & Kotler, P. 2016. Social Marketing: Changing Behaviors for Good, 5th Ed. ISBN: 978-1-452-29214-4

Levine, D. A., & Cancer Genome Atlas Research Network. (2013). Integrated genomic characterization of endometrial carcinoma. Nature, 497(7447), 67.

Madura, J. (2015). Financial Markets and Institutions. Boston: Cengage Learning.

Onaran, Y. 2017. “US Mega Banks are this close to breaking their profit record” Bloomberg Markets. Available from: https://www.bloomberg.com/news/articles/2017-07-21/bank-profits-near-pre-crisis-peak-in-u-s-despite-all-the-rules. Accessed 15/03/18.

Sharp, B., Dawes, J. 2001. “What is Differentiation and How Does it Work?” Journal of Marketing Management, 17, 739-59. Doi: 10.1362/026725701323366809

Sherman, M. E., Figueroa, J. D., Henry, J. E., Clare, S. E., Rufenbarger, C., & Storniolo, A. M. (2012). The Susan G. Komen for the Cure Tissue Bank at the IU Simon Cancer Center: a unique resource for defining the “molecular histology” of the breast. Cancer Prevention Research.

Varadarajan, P.R. & Menon, A. 1988. “Cause-Related Marketing: A Coalignment of Marketing Strategy and Corporate Philanthropy” Journal of Marketing Vol 52(3) pp. 58-74.

Wan, A. & Sidoti, J. 2016. “Why ‘Special Purpose Entities’ are so special” Crowdfund Insider Available from: https://www.crowdfundinsider.com/2016/09/90049-special-purpose-entities-special/. Accessed 15/3/18.

WHO (World Health Organization) 2018. Cancer: Fact Sheet, February 2018. Available from: https://www.who.int/mediacentre/factsheets/fs297/en/ Accessed 20/3/18.

Yankelovich, D. & Meer, D. 2006. “Rediscovering market segmentation” Harvard Business Review. February, pp 1-11.

Yeates, C. 2017. “Big four banks set to rake in $31b in profits, boosted by rate hike ‘tailwind’” Sydney Morning Herald 23 October. Available from: https://www.smh.com.au/business/banking-and-finance/big-four-banks-set-to-rake-in-31b-in-profits-boosted-by-rate-hike-tailwind-20171020-gz4o4l.html Accessed 20/3/18.

Zhang, J., Baran, J., Cros, A., Guberman, J. M., Haider, S., Hsu, J., & Wong-Erasmus, M. (2011). International Cancer Genome Consortium Data Portal—a one-stop shop for cancer genomics data. Database, 2011.