Union slams CBA’s “toxic sales culture”
The Finance Sector Union (FSU) has slammed the Commonwealth Bank of Australia (CBA) for its pressure on staff, and says its members are still under threat of being performance managed despite the Banking Royal Commission and public scrutiny.
A CBA executive has told the Banking Royal Commission that the bank failed to act in the best interests of its customers in relation to the sale of credit insurance.
CBA general manager of retail products, Clive Van Horen, told Commissioner Hayne that 64,000 credit card insurance policies had been sold to pensioners, students and unemployed people, which was a breach of CBA’s obligation to act honestly, efficiently and fairly as only employed persons could claim on the insurance policies.
He said the bank pushed sales by offering staff members bonus awards.
FSU national secretary, Julia Angrisano, said this reflected a “toxic sales culture” that permeated down from remuneration structures of the CEO and senior executives.
“Pay models and incentives linked to the sales of financial products is pushed by management in every customer interaction,” said Angrisano. “The employment of CBA bank workers is subject to meeting targets.”
“Many of our members have expressed the concern they feel as they are required to either sell inappropriate products to customers, who they know doesn’t need or can’t afford them, or alternately, jeopardise their employment by failing to meet these targets.”
AUTHOR
Anastasia Santoreneos
Recommended for you
An former financial adviser based in Sunshine Coast has been permanently banned by ASIC after being sentenced to six years imprisonment for fraud
This senior consultant has emphasised why ‘playing the long game’ of cultivating a desirable work culture is vital for high-performing financial advice firms and their teams.
With superannuation funds and financial advisers being the top two sources of information for retirees, a TAL white paper has revealed which they turn to first.
Newly launched wealth technology platform HeirWealth has appointed multiple senior industry figures to its advisory board including former MLC CEO Geoff Lloyd as chair.
