Today, Wells Fargo was hit with $1 billion in fines for their underhanded mortgage and auto loan schemes that negatively affected customers. The shady bank practises were only brought to public knowledge a couple of years ago. However, the friendly, neighborhood bank persona has not existed or began declining since the late 1980s when bank mergers dominated the financial world. It was during those years when branch staff were coached to transition customers from the friendly one-on-one banking services to using automated services. It was at that time sales became a top priority, so branch staff and phone reps were pushed to sell as many banking products as possible. During those days, many branch workers who did not agree with the new policies resigned. Others were fired since they could not pass the certification exams to sell insurance and brokerage products. When the sales priority was highly promoted versus service, the deceitful practice of opening as many new accounts as possible became a mission for some personnel since the more sales they made, the higher the bonus they received. In addition, recognition was given each month to the branches with the top sales record while top phone sales personnel would earn not only additional income but gifts for their achievements. The bank has been penalized with hefty fines, but no action has been taken against employees who callously opened accounts without absolutely no consideration for the financial sufferings of many customers who were greatly impacted. It didn't matter the age of the customer - banking personnel displayed no conscience as they slyly bated customers into opening accounts that they did not need. Wells Fargo will easily pay the $1 billion fine. But, how and when will other banks and the banking personnel, who duped customers for their own personal gains, pay for their crimes? Some former and current personnel say they were influenced by high sales targets and rebuked by their managers if those targets were not achieved. However, when products are sold to customers, such as those low income senior citizens on fixed income, there is absolutely no excuse!
Friday, April 20, 2018
No Longer Your Friendly, Neighborhood Bank
Today, Wells Fargo was hit with $1 billion in fines for their underhanded mortgage and auto loan schemes that negatively affected customers. The shady bank practises were only brought to public knowledge a couple of years ago. However, the friendly, neighborhood bank persona has not existed or began declining since the late 1980s when bank mergers dominated the financial world. It was during those years when branch staff were coached to transition customers from the friendly one-on-one banking services to using automated services. It was at that time sales became a top priority, so branch staff and phone reps were pushed to sell as many banking products as possible. During those days, many branch workers who did not agree with the new policies resigned. Others were fired since they could not pass the certification exams to sell insurance and brokerage products. When the sales priority was highly promoted versus service, the deceitful practice of opening as many new accounts as possible became a mission for some personnel since the more sales they made, the higher the bonus they received. In addition, recognition was given each month to the branches with the top sales record while top phone sales personnel would earn not only additional income but gifts for their achievements. The bank has been penalized with hefty fines, but no action has been taken against employees who callously opened accounts without absolutely no consideration for the financial sufferings of many customers who were greatly impacted. It didn't matter the age of the customer - banking personnel displayed no conscience as they slyly bated customers into opening accounts that they did not need. Wells Fargo will easily pay the $1 billion fine. But, how and when will other banks and the banking personnel, who duped customers for their own personal gains, pay for their crimes? Some former and current personnel say they were influenced by high sales targets and rebuked by their managers if those targets were not achieved. However, when products are sold to customers, such as those low income senior citizens on fixed income, there is absolutely no excuse!
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