Dollarmite manipulation shows bank culture “rotten,” FSU says
The manipulation of child bank accounts by Commonwealth Bank (CBA) staff in order to meet sales targets is further evidence that the dominant culture within banks is rotten and must be overhauled, the Finance Sector Union (FSU) said.
It was revealed over the weekend by Fairfax Media that staff at a number of the big bank’s retail branches made transactions in the junior “Dollarmite” saver program without the knowledge of parents, by putting just enough money in each account to accrue bonuses and meet targets.
“The CBA must take responsibility immediately for systems that impose sales targets on products such as Dollarmite accounts, particularly where sales figures are a key consideration in performance reviews – and where staff are required to meet sales targets in order for employees to avoid performance management and ultimately keep their jobs,” the FSU said.
“It is unacceptable that bank workers would be put under such extreme pressure that in this case led to referrals being made up to avoid being shamed in the workplace.”
In its most recent submission to the Royal Commission, the FSU has called for a comprehensive Financial Services Code to rebuild trust and confidence in the finance sector, imposing accountability and responsibility on the senior managers and executives who determine the culture and operations of the banks and other entities within the sector.
“The banking culture which focuses on sales and profit over service to the community is shocking,” said FSU national secretary, Julia Angrisano.
“If the pressure on bank workers to sell aggressively and meet unrealistic KPIs has led to the manipulation of youth bank accounts, the issues of the sales culture and regulation within the sector must be addressed urgently.”
Recommended for you
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
