Westpac removes product incentives from teller remuneration
Westpac will remove all product-related incentives from teller remuneration throughout its branch network. Starting next month, teller incentives will be based entirely on customer feedback about the quality of service.Westpac chief executive Brian Hartzer said the bank was also reviewing the way it rewarded specialised sales roles in its network. The bank will stop varying rewards based on different products; instead staff will be rewarded for "meeting the full range of our customers' needs."Speaking at an Australia-Israel Chamber of Commerce lunch in Melbourne yesterday, Hartzer said the banking industry recognised it had a "trust gap".Hartzer said: "As a result of things some bankers have done or the way banks have responded when things have gone wrong, some people have concluded that banks are only out for themselves."We need to recognise that at times we have not met the expectations of the community. And banks only have themselves to blame for that."He said the bank was reviewing all of its products, policies and processes to make sure they were working in customers' interests.In April, the Australian Bankers Association announced that the industry would establish an independent review of product sales commissions and product based payments, with a view to removing or changing them where they could lead to poor customer outcomes.The industry has also undertaken to enhance customer complaints processes, ensure high standards of whistleblower protection, remove rogue advisers from the industry and review the Code of Banking Practice.Hartzer said: "Through the Australian Banker Association we are working to agree on steps the industry can take to eliminate the perception of conflicts of interest on the way frontline staff are paid."We're appointing an independent customer advocate who is empowered to resolve issues for our customers and who can overturn decisions made by our internal dispute resolution process. "And we're investing more in our compliance and oversight capabilities to make sure we can quickly spot and resolve issues when they occur."