The Co-operative Bank has banned hard-selling bonus targets and will instead award on customer service.
The move, which is the first of its kind, has been prompted following a number of financial mis selling scandal including that of mis sold payment protection insurance (PPI). Last month the Financial Services Authority (FSA) found “serious failings” in lenders incentive schemes as Martin Wheatley, FSA Managing Director explains:
“Most of the schemes we looked at were likely to drive people to mis sell in order to meet targets and receive a bonus.”
Payment protection insurance was mis sold to millions of customers who couldn’t use it, didn’t want it or weren’t even aware they had it. There is now evidence that staff were pushing such products in order to meet sales goals regardless of the customer’s situation.
The Co-operative’s new scheme, which will use mystery shoppers to put staff to the test, is an attempt to readdress the previous disregard of customer’s needs by placing them back at the heart of its service.