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part of Shenton Way's historyWe are hearing that the banks and other financial institutions are doing the right thing by compensating the vulnerable group ie. defined as illiterate, elderly people.
A bank said they are prepared to do that as their investigation has shown that their sales staff have failed to live up to their "high" standard of selling and marketing financial products. Such well crafted marketing communication punch line indeed AS it suggests that the sellers have "high" standards but some may have failed to deliver according to standards.
When a plane crashed, the investigators would look at how the pilots were trained and pre-qualified for the job.
Couple of questions in my mind:-
- How do the banks/FIs approve a product before being "sold" to their respective custoner base? I notice some FIs are deeplyly involved with these ill-fated products but other FIs are not involved at all.
- What are the profiles of their sales staff? How are they remunerated? Are they qualified to advise?
- Are these sales staff personally liable?
- Do the FIs really think the elderly and illiterates are the vulnerable groups and thus the compensation? Or the FIs are most vulnerable to additional liability given their "miselling" to these "vulnerable" groups?
1 comment:
Most Consumer bankers still practice caveat emptor. The consumers need not need to know what the banks are doing but to either prepare to take returns or lose their shirt off. What worries me is some of these investment bankers are acting like "hard selling" and give plenty of assurances which mislead consumers.
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