Bank staff pressured to flog unnecessary loans

<p>MORE than half of all bank employees have steered a customer towards a financial product they did not need in order to achieve performance targets set by management.<br /><br />That was one of the findings of a national survey of 3200 banking staff by the Financial Sector Union, which revealed growing resentment over strong-arm sales tactics used by the big four banks.<br /><br />Despite soaring levels of household debt and credit card fatigue, banks are increasingly using financial incentives to motivate staff to flog more loans and credit cards.<br /><br />Advertisement: Story continues below <br />The survey showed almost 90 per cent of all bank workers now earn up to a quarter of their total remuneration in bonuses. Of the big four banks, Westpac and ANZ placed the most pressure on staff to foist financial products on customers.<br /><br />Almost 8 per cent of respondents from ANZ bank admitted they always tried to persuade customers to take on more debt than necessary.<br /><br />National Australia Bank staff were under the least pressure to up-sell.<br /><br />Union national secretary Leon Carter said some workers felt their job security depended on meeting performance targets that were often ''unrealistic and rigorously enforced''.<br /><br />''What's being rewarded is the 'Do you want fries with that?' mentality. The system of performance targets and incentives is completely at odds with the notion of responsible lending and professional service.''<br /><br />He said 85 per cent of staff wanted the big four banks to strike a better balance between customer service and corporate profits. The Australian Bankers Association said it was unable to comment on industrial relations issues.</p><p> </p>

Bank staff pressured to flog unnecessary loans

MORE than half of all bank employees have steered a customer towards a financial product they did not need in order to achieve performance t...

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