Sales culture is one of the driving forces to improve a company’s profit generation. As banks aim to increase their profit margins, these individuals are needed. However, it’s because of the sales culture that plenty of consumers bought PPI that would be useless to them in the future. Are commission-based products the bane or boon of the financial industry?
According to the Financial Conduct Authorities, it’s one of the reasons. A very aggressive sales culture in most UK banks had urged many to mis sell payment protection insurance, mortgage products and other financing products. The FCA had banks re-calibrate their rewards programs for employees to guarantee useful products for consumers.
Today, according to local UK newspapers, this particular ‘bonuses management’ clause had led to the downfall of its profit.
Lloyds indeed made good on its promise to end the sales culture breeding in all its branches.
However, employees said that the world of a Lloyds employee had ended with an uninspiring note. They are settled down without a focused sales target, which at that time, was clear due to the high amount of sales competition between branches.