What’s all this crazy mad rush to meet sales target by banks. Fake accounts being opened to inflate sales. I have long believed that this aggressive push is bound to give some day. And it’s happening in the US with Wells Fargo buckling under the pressure of aggressive sales. The fallout - heavy penalties, flight of deposits, loss of jobs and reputation! Was it worth it?
What’s happening in our country? Are we safe? Sales targets are so stiff that a sales or relationship management job is dreaded. Scramble for deposits by banks, one pie being coveted by more than 50 banks; how many accounts can one open? Even the PSU banks, with a common owner, compete with each other. How wasteful an exercise can that be? Financial services have their own share of targets to meet; sales being made to meet targets and not the need of the customers.
And where are we on financial inclusion. Visited one of the private sector banks recently to open a bank account for a house helper who wished to make a decent monthly deposit, however the task was onerous despite the so-called easing of account openings. No easy way, nobody chasing this money, no sales calls to these people.
Is it not possible for banks to operate in a more amiable constructive way, seeking inclusive growth, seeking accounts and deposits from those who don’t already have accounts? Can the key metrics of valuing a bank change to more qualitative than quantitative parameters? There has to be a pre-emptive solution to avoid any debacle, and our wise bankers would do good to collectively work this out.
Priti Gulati, Founder, EXPERTIES