Katie Bice: The banks must win back our trust
THE banking royal commission has realised all our worst fears about our major financial institutions — that they care more about money than about us, writes Katie Bice.
Opinion
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THE banking royal commission has realised all our worst fears about our major financial institutions — they care more about money than they do about us.
Over the past few weeks we’ve heard one banking executive after another throw themselves at the mercy of the commission, admitting they’ve duped customers, lied about it and pocketed the profits.
We’ve seen customers, just like us, cry as they’ve told their personal stories of ruin at the hands of people they trusted.
WESTPAC ADMITS THEY GOT IT WRONG
HOW WE WILL ALL PAY FOR BANKS’ BAD BEHAVIOUR
And trust is what lies at the heart of all this — because when it’s all over changes will, and have already been, made to processes, to products and to personnel. Victims have been compensated and executives have promised to do better. But the stink surrounding the banks’ motives will remain.
We deal with banks because we have to, not because we want to. We aren’t silly enough to shove cash under our mattresses and when we want to buy a house we need them to loan us the money.
But we expect in return that they should act with a modicum of decency in their dealings with us.
No sensible person would expect such large institutions, dealing with an enormous number of transactions, to do so every single time without fault.
But there’s a difference between mistakes and downright deception. And too much of the latter has been taking place in an effort to make themselves richer.
Wherever money is involved there is a chance people will steal. But when you incentivise financial products and allow workers to earn bonuses for how many customers they reel in, you’re opening yourself up for trouble.
It encourages people who would never consider swiping $10 out of someone’s wallet to cut corners and lean on people to get themselves a few extra dollars in their pay packets.
When compared to other countries our banking institutions have served us well. Their rigorous safeguards helped insulate us from the global financial crisis and a profitable and stable banking sector is actually good for us all.
But it’s right that the blowtorch has been turned on them because without scrutiny you get the feeling this behaviour would have continued to go along unfettered.
It will be a long way back for our big four from this PR disaster. It’s a problem that won’t be solved with clever advertising. It could well be time for a back-to-basics approach where customers come first.
Katie Bice is Sunday Herald Sun deputy editor
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