According to Lansdowne Senior Partner Stuart Roden, PPI mis selling and UK bank scandals are symbolic of the banks’ assertion as an unethical industry player.
Roden pointed out that since the financial crisis, public trust in capitalism and its institutions has not been the top priority. This was in the form of mis selling PPI, an unethical and profit-driven reward system and bribery by banks in foreign countries are some of the most devious practices the industry had come to accept as “normal.”
He points out that the lack of purpose in most institutions had led to profiteering rather than genuinely helping out individuals residing in the country. Roden said the world faces the problem of probity and punctuality wherein value is destroyed in the pursuit of short-term success.
The assymetric and one-sided reward system has become a culture inside banks. Employees now concentrate on furthering their profits rather than helping consumers find the right product for them. Commission-based systems and unethical practices with huge returns have superiors turn a blind eye to regulations that protect the customers.
A core change that focuses on culture change as a core part of a business strategy is important to help the UK bank win back its customers and avoid another mis sold PPI fiasco or anything at the same integrity.