In a speech to the Australia Israel Chamber of Commerce in Melbourne yesterday, Westpac chief executive Brian Hartzer called for ongoing and significant changes to the way banks work with their customers.
“We need to recognise that, as an industry, we have a trust gap. We need to recognise that we have not met the expectations of the community. People are saying things need to change. Things do need to change. The good news is they are changing,” Mr Hartzer said
“From next month, we’re planning to remove all product related incentives across our 2000 tellers in the Westpac branch network.
“Rather, their incentives will be based entirely on customer feedback about the quality of service they received in the branch.
“We are working with the Finance Sector Union and our bank tellers on implementing this new initiative.
“I know our people do the right thing by customers, but I want our customers to be confident of that too.”
Mr Hartzer said Westpac was also in the process of incorporating the principles of the banking oath into its employee code of conduct.
“We are committed to closing the trust gap. We create value for Westpac when we help customers create value for themselves. That’s why I believe that over the long term, there is no gap between the interests of Westpac and the interests of our customers.”
[quote=Anonymous]Will you also remove the wealth targets bankers have to refer buisness to financial planners which put pressure on planners to sell products such as insurance to keep the bankers who ever them their work happy? [/quote] Just look at the Wells Fargo disaster.
Excellent first step. The next step is to ensure your training programs shift from a focus on connecting, convincing, and closing to a focus on connection, consciousness, and co-creation. Have a look at US Senator Elizabeth Warren grilling the Chairman of Wells Fargo about their focus on cross selling and how that impacted people. Time to look at the world differently. Time to put “our responsibility to shareholders” after our responsibility to our people, and our responsibility to clients and potential clients. Time to get A Simple Truth – “It’s not about me…”
This is just a covered up to use front staff.
What about incentive for branch manager and home finance manager who gets so call bonus actually commission that is label as production credit.
Financial planner has to generate that much production credit, for branch otherwise will be moved to other branch or go on to performance counselling and eventually walked out.
What about senior manager gets over ride commission of financial planner’s total commission.
Why use powerless and venerable front staff for smoke and mirror to fool media.
I feel there is a great opportunity here given this matter has been raised to suggest ways to make the branch networks more viable as today branches are a high cost operation and and low cost start up competitors are entereing the markets using apps and other technology systems.
So if the across the counter sales are removed how then is the branch network viability to be improved.
Should branch models now be turned to Solution Centres and we need to also undertsand that today 82% to 84% of clients actually undertake their own research online before the choose a product to buy, the internet has opened a whole new world to the way we have done business in the past.
Should banks just become wholesallers of products.
Who cares about the product incentives for tellers, what about the incentives for the aligned financial advisers, what about changing the banks APLs to include more than just their own products? What about ACTUALLY thinking about a clients best interests and not just writing product for commission..
I hope the Bank will remove the wealth targets that staff have to refer buisness to financial planners which put pressure on their planners to sell products such as insurance and super in order to satisfy the bank’s senior management and ultimately their board?
Product flogging over the years has built sales however it has also caused customer and staff disengagement. In today’s digital world there are an oversupply of products however what is sadly lacking is customer service, you know the human interactions. Westpac’s new direction may in fact see greater and more sticky sales happening. Well done on the new direction let the technology sell but ensure the staff are skilled in solution providing when called upon by customrs
Jeff I agree, I think the sales will still be there. The difference is Westpac wont incentive these going forward. Do you believe the Manager will not still demand sales from there front of house? Trust needs to be built with a eye on the customer at all times not at there back pocket. I see this more of short changing the front line under paid staff. The Branches and Staff will still have targets
Yep, that will make us trust banks ….NOT! Having ripped customers off for decades and NOT put the client’s interest first we’re supposed to believe that it will forgo profits in favour of “adopting new principles”. I’ll ask the tooth fairy what she thinks.
Hmmm, very in politically correct on the tooth fairy
Will you also remove the wealth targets bankers have to refer buisness to financial planners which put pressure on planners to sell products such as insurance to keep the bankers who ever them their work happy?