Put customers back at the heart of banking!

Which? the consumer organisation has published a banking manifesto to  rebuild trust between banks and their customers. It wants banks to put service ahead of short-term profit.24-06-2010

Which? chief executive, Peter Vicary-Smith says:
“Banks have been allowed to ride roughshod over their customers for too long. Mis-selling, poor products and unsuitable financial advice have become the cornerstone of the banking culture and this must change.
A Commission set up by the Government to look at the future of banking found there needs to be a dramatic change in banking culture. Which? was represented on that commission and wants a renewed focus on the needs and interests of customers. If the banks adopted this 10 point plan would you start to trust them again?  
o    Ban sales incentives and commissions – instead reward branch and call centre staff for providing high-quality service.
o    Make all bank fees fair – charges must be transparent and proportionate to the cost of providing the service.
o    Make switching easier – the switching process needs to be made clearer and quicker.
o    Support customers in financial difficulty – bank charges and overdraft fees should not contribute to a customer’s financial instability.
o    Existing customers should not be penalised for being loyal to their bank.
o    Inform customers of risks – banks must clearly state whether products are covered by the Financial Services Compensation Scheme.
o    Offer 100% guaranteed accounts – new accounts should be offered that are protected from external risks.
o    Provide services that meet customers needs – a range of services must be available to prevent excluding customers who are unwilling or unable to bank online or those who wish to use cheques.
o    Ensure complaints are dealt with fairly and quickly – all complaints must be dealt with in a timely manner.
o    Give management long-term incentives – managements remuneration must be linked to long-term incentives to help create a more customer-focused industry.