RBS leads the way in attempting to change the aggressive sales dominating banks for more than five decades. Changing to consumer satisfaction as its focus instead of bigger profit quantities for higher commission, RBS promises no bonuses but a pay increase of 5 per cent among its employees.
Unions welcomed the move openly, urging other banks to follow RBS’ example to avoid another PPI mis-selling scandal for the entire industry.
PPI refunds have cost the industry a £28 billion loss from all profits. Rogue claims management companies, aiming to exploit the issue, target consumers who they charge up-front and leave hanging. These rogues also push up banks’ administrative costs for processing their batch of claims, which are obviously ghost consumers who do not have any PPI.
The Culture Must Change
Consumer Group Which? praised RBS:
“It’s good to see RBS making this positive change to enable staff to focus on customers’ needs rather than sales.
“We now want to see all banks and the regulators focused squarely on delivering cultural reform across the industry to put customers at the heart of banking.”
However, many experts believe the ‘toxic’ sales culture of the UK will take an entire generation to change. The pessimistic view on the UK financial industry’s improvement is accompanied by a 2014 research of Cass Business School and New City Agenda.
If poor standards continue, the UK could see more than £28 billion in fines. Estimates indicate the possibility of a £38.5 billion in fines over 15 years.
If you’re asking yourself “Have I Got PPI?”, do head to our PPI claim guide to know more!