Group calls for enquiry into NZ banks' sales culture

by Krizzel Canlas26 Jun 2018

Sales culture is rife in the New Zealand banking sector, and it calls for a transparent and thorough public enquiry, says First Union.

According to the group, 87% of over 600 union members working at ANZ, BNZ and Westpac feel the pressure to sell financial products, and 92% feel the same or more pressure to sell financial products now than they did a year ago (50% more; 42% the same).

“First Union has been raising the issue of sales targets and sales pressure with the Banks for years, but we’ve been knocking on a closed door,” First Union national organiser for finance Stephen Parry said. “It is only in the wake of ongoing scandal in the Australian financial sector that the banks and the regulators have started to take notice.”

Parry noted that stress arising from sales pressure is the most consistent complaint the union receive from its members.

“Sales targets and sales pressure in the banks is bad for the public as well as for workers,” Parry said. “Consumers should feel confident when they approach a bank that their interests will be put first. This is not possible where bank workers are under pressure to sell as much product as possible.”

The union said it welcomes the Financial Services Conduct and Culture Review currently being undertaken by Financial Markets Authority (FMA), but also call for a full public enquiry to ensure that the voices of consumers and bank workers are heard.

 

Related stories:
Bank bosses to be called before Parliament amid misconduct concerns
FMA, RBNZ: No evidence of systemic misconduct in banking sector 

 

COMMENTS

  • by Paul N 26/06/2018 12:53:16 p.m.

    As an Authorised Financial Advisor I see lots of miss-sold products that have no relationship to the individuals needs. About time this practice was stopped.

  • by Jason 28/06/2018 9:05:55 a.m.


    agreed ,to many first home buyers are getting into outside debts 12 to 18 months after they get their first mortgage and Im sure they are not being tested to see if they can afford to fund it.

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