Barclays chief's advice claim sparks a clash
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Source: Vismedia
Barclays global retail banking chief executive Antony Jenkins has been accused of “living in a parallel universe” after he defended the banking sector against charges of misselling and high-pressure sales tactics.
At a Which? Future of Banking Commission hearing earlier this week, bosses from high-street banks gave evidence to the panel, led by Tory MP David Davis and Treasury select committee chairman John McFall.
Which? said it has amassed many examples of customers not being treated fairly by highstreet banks when sold financial products but Jenkins argued that these cases are in the “minority”.
He said: “Misselling is a very serious problem but there is absolutely no benefit at all for us to sell a product that the customer neither wants nor needs. We want a long-term relationship with our customers.”
He said when he visits branches, he finds colleagues are “very keen to get the customer the right product” and “might even raise things to their attention like, do you have enough life insurance? I do not claim perfection but we have a good culture and we put the customer at the centre at everything we do.”
But Capital Economics managing director Roger Bootle said: “It seems like you live in a parallel universe. We have lots of evidence from members of the public of what the banking experience is like and then we listen to you and it sounds like Barclays is something like the Samaritans, all cuddly and friendly. This does not quite gel.”
McFall said he had personal experience of “aggressive selling” by Barclays of payment protection insurance, which prompted the TSC to look into the products.
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Readers' comments (35)
Tim Kelsey | 19 Mar 2010 9:14 am
That's funny, whenever i go into Barclays to pay money in they always try and sell me a current account that charges a monthly fee with no benefits that are any use to me. I feel that staff are very keen to sell me a product they'll get commission on.
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Funkmeister Sants (Bonus) Appreciation Society | 19 Mar 2010 9:23 am
He is one of the 'Gods of the Universe' and so IS ENTITLED to live in a parallel universe.
Obv. not in the same one we live in. Hey ho.
I'm sure Funkmeister Sants will no doubt 'not comment' on the mis-selling/high pressure sales issues. (They're the Banks business ... after all)
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BC | 19 Mar 2010 9:25 am
Funny that, a friend of mine, Bank Manager, left a Hight Street bank after 20 years as he was, "fed up being forced to sell inexpensive and inappropriate products to people who did not want them, need them or could afford them". Perhaps these people (who will probably end up at the FSA anyway) should speak not just to their clients but their staff - and then sack them for not reaching their targets..... Grrrrr
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Anonymous | 19 Mar 2010 9:34 am
I opted to take VR from a Barclays sales management position at the end of 1999 after over 20 years. They paid me a lot of money to leave and I was glad to do so.
I can categorically state that we were targeted for PPI peneration (percentage of PPI policies to the total number of loans) at around 70%. We were even given the strategy of "greed" as acceptable - e.g. selling PPI to a member of the Emergency or Armed Services on the basis that, in the event of illness, they would be paid twice. Of course, the redundancy cover (which used to be included with no option to detach it) for these and others was totally useless, given that the only likelihood of job loss is gross misconduct sacking or resignation, neither of which is covered.
I am now an IFA, having served an apprenticeship as a tied adviser (NOT bankassurance, I hasten to add) and I am all for a genuine exploration of clients' needs, but the products have to fit and be appropriate or there is no sale. I admit, however, that I am ashamed of my sales time with Barclays.
The parallel universe claim by Roger Bootle is spot on - and it has been like that for years. However, I would add that they are all the same; my experience with applying for jobs as a bancassurance adviser (none of which I wanted once I had sampled their cultures) tells me that. You couldn't put a fag paper between any of them!
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Anonymous | 19 Mar 2010 9:35 am
As an ex building society mortgage advisor I was the person in the branch that could cross sell every product. The pressure was immense, and questions were asked if targets were not met, 121s were marked down and I was left feeling very frustrated. As someone who enjoyed doing right by the customer I left pretty quickly.
Perhaps these targets should be removed completely and advisors rewarded for doing right by the customer!
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J | 19 Mar 2010 9:38 am
Five friends and family members have been "advised" by Barclays.
Obviously, they have been sold five entirely inappropriate 'product solutions', which just happen to have high up-front charges and pay absurd levels of commission.
Fortunately I have assisted in writing complaints and all five have been upheld. No doubt these represent "the minority" referred to by genius boy Jenkins...
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Brian Harrison | 19 Mar 2010 9:40 am
I recently visited my local Nat West branch to open a additional bank account. For almost an hour the assistant tried to sell me various products and services before asking me to sign to say no advice had been given, customer instruction..
Based on my experience the banks are in a sales system and dont know that what they are doing is hard selling or indeed that there is an alternative sysyem, its a culture problem.
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Anonymous | 19 Mar 2010 9:42 am
We all see the stats about the banks and the claims that go to FOS but this is just the tip of the Iceberg.
If the FSA published the list of complaints against the Banks reported in the banks own returns to the FSA, there would be huge embarrassment to both the Banks and the FSA.
The Banks are currently rolling over and paying the majority of complaints to reduce the figures on the claims referred to FOS in an attempt to improve their image.
I'm also convinced the Government has told the FSA to go lightly on the Banks to enable them to get back into profit for political expediency.
Why else have the FSA allowed the Banks to flog structured products to client with total disregard to compliance requirements and done nothing when this has been reported in the press for more than a year.
When are the FSA going to smell the coffee and wake up.
In the arena of Financial Advice, big business just does not work , because ultimately the client does not get a regular personal service with a long term commitment from the adviser.
Forget accountability and all the regulation you like.
Ultimately clients only get good service from IFA's that care about and take a long term commitment to their clients.
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Anonymous | 19 Mar 2010 9:47 am
"...colleagues are very keen to get the customer the right product..." - again somebody else who can't differentiate the difference between advice and product sales.
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Anonymous | 19 Mar 2010 9:48 am
#Tim Kelsey - am guessing you are an IFA, so you probably do the same? Is that not what businesses do? try & sell you something to make money??
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