The Daily Telegraph today revealed proof of how banks pressure staff to sell more and more products, including debt, regardless of economic conditions.
 
Even during the global financial crisis, bank workers had to sell more debt products—just to qualify for basic salary increases and keep their jobs.

Commonwealth Bank, for example, required staff to push higher credit card limits and new credit cards.  To qualify for raises, staff had to sell the equivalent of almost ten new credit cards a month.

“This isn’t what workers or customers want.  Our members want to spend more time helping people with their banking needs.  Not pushing debt products that people didn’t ask for, often don’t need and which keep pushing personal debt ever-higher,” said Geoff Derrick, NSW/ACT Secretary of the Finance Sector Union

“The banks’ sales and bonus culture got the world into the global financial crisis.  But it’s business as usual all the same.”

At Commonwealth Bank, various types of financial products were given points.  A new credit card was worth five; a new online savings account just three.  Documents obtained by the FSU showed selling a higher credit card limit will earn more points in 2009-10 than last year.  But helping a child open their first savings account was worth fewer points.

To qualify for a minuscule pay rise of 1.5%, CBA workers have to sell 10% more products to customers this year.

“No matter how bad the economy got, Commonwealth Bank wanted to suck more and more people into debt,” Mr Derrick said.  “Bank workers are tired of it. They are not consulted about these target increases, nor about their customers’ needs. These decisions are made in the rarefied atmosphere of the head office and rolled out across Australia, regardless of local economic conditions.  Bank customers need to understand what’s going on here.”

Thanks in part to aggressive sales targets for high-debt products like credit cards, Australians’ personal debt is ballooning.  Since 1990, it has increased six-fold—from $190 billion to $1.1 trillion, not counting inflation.

ENDS
Media: Leanne Shingles, 0423.821.773
Spokesperson: Geoff Derrick, 0419.632.722