One small thing leads to another. The more small things that lead to consequences, the more they build a bigger situation. Every bank employee thought one small mis-sold payment protection insurance only meant additional commission on their behalf.
Commission might be enough for bank employees to increase their work volume. But there is more to the scandal’s cause than just plain greed.
Commissions meant earning about 8-10 per cent of the insurance policy’s total value, which isn’t that large. Bank employees will do anything to increase that number. So, they resort to unscrupulous methods with existing products. They would claim PPI can increase chances of loan or credit card application success.
Packaging Unrelated Or Varying-Quality Products
The banks make it easy for employees to mis-sell PPI. Banks bundle single-premium PPI with credit cards or car loans. Mortgages could see a Mortgage Payment Insurance policy attached with the financing. Employees can claim this as part of the package.
However, packaging unrelated or varying-quality products, usually ones where required products are only case specific, is an indication of poor competency in developing products on behalf of banks.
Aggressive Sales Culture
The UK has every right to blame the aggressive banking culture all over the world. Everyone wants to make a sale and earn a huge bounty on his or her commissions. But if the system of incentives and packaging isn’t up to speed on fairness and customer satisfaction the aggressive sales and products sold can go nowhere.