The Five Things UK Banks Must Do To Avoid Future Mis Selling Such As PPI

April 17, 2015
by admin in PPI News

Proper staff management and a good incentives system is not enough according to The Consulting Consortium and RecordSure Boss Joanne Smith. She urges performance schemes to be set from the top with consistent monitoring and adjustments to identify the risks their performance management schemes pose to their customers.

Performance schemes have become the bane of PPI selling. With large incentives for frontline staff, banks pressured employees to sell more financial products, including PPI.

Should they succeed here, they can focus on fair results for customers. Smith stresses that improving the manner they monitor performance management strategies is imperative to avoid bank pressure against employees.

She listed five things that can help such as

  1. Employee Feedback

Let your employees from all levels tell their insight about the new performance management schemes in practice. This helps in managing the risks of mis selling, such as consistent performance pressure.

  1. Conversations Monitoring

Smith highlights the usefulness of combined face-to-face and phone-based conversations in looking out for inappropriate staff behaviour. This allows banks to find behavioural trends, such as using abusive sales tactics for consumers to purchase products and omitting information.

  1. Risk-Based Monitoring

Risk-based approach to monitoring calls and activities means looking out for areas likely to lead to poor behaviour. Bank managers should focus on staff who recently had an underperformance review or disciplinary action.

  1. Management Information

All information for monitoring should be from the performance of staff and the efficacy of the new performance management scheme. Statistics relating to financial goals are a failed metric, smith says because it only serves to show the profit but not the efficacy of the new guidelines.

  1. Action

Once monitoring and analysis of performance management assessment is finished, the banks must make sure they would act upon the observed risks and trends.