Banks shield employee views on reform
Banks are "yet to determine" the industry's "longer term position on reporting of employee survey results," Ian McPhee wrote in his seventh "independent governance expert report" for the Australian Bankers Association, released on Friday.Edelman Intelligence has conducted a survey of bank employees "to help banks identify how they can further embed the initiatives within their organisation."Other than the four major banks, only one other bank has participated, McPhee wrote."As a limited number of banks took part, the survey is not fully representative of employee attitudes across the industry and accordingly the industry does not intend to publish the research incorporating the perspectives of employees," he said. McPhee explained that this portion of Edelman's research "is to be used by participating banks to assess how well the reform program initiatives are understood and what further steps those banks can take to further embed the initiatives within their bank."The ABA also released the second wave of Edelman consumer research on Friday.McPhee summarised the research as showing that "there are some signs that consumers' perceptions towards the banking industry are improving. Consumers are feeling more positive about the direction that the banking industry is headed. "Measurements on banks becoming more customer-focused and helping customers navigate choices to make the best decisions for themselves, have increased with 77 per cent of consumers thinking their main bank 'is becoming more customer-focused' (up 14 percentage points since June 2017) and 44 per cent of consumers now feel the industry is headed in the right direction (up five percentage points since June 2017)." The June 2017 report identified that 53 per cent of those surveyed showed trust in their main bank compared to 31 per cent for the banking industry, McPhee said. The latest research "shows consumers' level of trust in their main bank has increased by three percentage points since June 2017, whereas trust in the industry has increased by one percentage point." In his assessment of the industry's work on its 2016 'reform program', McPhee wrote that "in the main, this has been another quarter of good progress by the industry in closing out deliverables ... or making further progress on those measures that will extend beyond the timeframe of my review."He said the most notable accomplishment since his last report was the completion of the rewriting of the Code of Banking Practice, pending approval by ASIC. When McPhee produced his sixth report in October he projected that this seventh report would be the last.McPhee will continue in the role a little a longer."The next report of this review, Report 8, is scheduled to be issued by no later than 21 April 2018 and will be my final report in the series," he said.