Westpac boss Brian Hartzer pledges to bridge ‘trust gap’

Westpac will try to regain lost community trust by removing all product-related incentives for its 2000 tellers.

Brian Hartzer wants to make sure “customers don’t have cause to question the quality of service that they’re getting”. Pic James Croucher

Westpac will try to regain lost community trust by removing all product-related incentives for the bank’s 2000 tellers from next month.

Chief executive Brian Hartzer made the commitment in a lunchtime speech today to the Australia Israel Chamber of Commerce in Melbourne.

Mr Hartzer acknowledged that banks had a “trust gap” and they had to bridge it.

“From next month, we’re planning to remove all product-related incentives across our 2000 tellers in the Westpac branch network,” he said.

“Rather, their incentives will be based entirely on customer feedback about the quality of service they received in the branch.”

Westpac (WBC), he said, was working with the Finance Sector Union and the bank’s tellers to implement the measure.

The bank’s move is in addition to an industry initiative by the Australian Bankers’ Association to eliminate the perception of conflicts of interest in the way frontline staff are paid.

An independent expert is reviewing the issue for the ABA.

Mr Hartzer’s overhaul of the incentive system for tellers comes only weeks before the major bank CEOs face their first grilling by the House Economics Committee chaired by Liberal Party MP David Coleman.

The CEOs will appear before the committee at least once a year as part of Malcolm Turnbull’s bid to neutralise the Labor Party’s popular call for a banking royal commission.

Mr Hartzer will appear before the committee on October 6.

The Westpac chief said the initiative on pay for tellers meant they would be rewarded for “meeting the needs of our customers” as opposed to selling different products.

“This is all part of making sure that our customers don’t have cause to question the quality of service that they’re getting, or the motivation of our people,” he said.

“At the same time, we’re reinforcing standards of behaviour, and enforcing consequences when people fall short.”

He noted the bank had already said it would appoint an independent customer advocate empowered to resolve issues for customers.

The advocate will have the power to overturn decisions made in the bank’s internal dispute resolution process.

“We are committed to closing the trust gap,” Mr Hartzer said.

“We create value for Westpac when we help customers create value for themselves.

“That’s why I believe that over the long term, there is no gap between the interests of Westpac and the interests of our customers.”