Wells Fargo to End Sales Quotas for Bankers

     (CN) — Less than a week after agreeing to a $185 million settlement over aggressive sales tactics, Wells Fargo said that it will get rid of its sales goals for credit cards and other banking products.
     Staring on Jan. 1, Wells Fargo’s retail bankers will no longer have to open a certain number of new accounts to meet goals set by their supervisors. The move marks a major switch in practice by the bank, which is known in the industry for its ability to sell multiple products to the same customer.
     The bank was hit hard by allegations that its staff opened millions of bank accounts and credit cards for customers without their consent in an effort to meet internal sales goals.
     Wells Fargo’s shares have dropped approximately 5.6 percent since last week when the $185 million fine against the bank was unveiled, and the Senate Banking Committee said Monday that it would hold a hearing next week on Wells Fargo’s sales practices
     Chief executive financial officer John Shrewsberry said Tuesday that the move to eliminate product sales goals is intended to give Wells Fargo’s customers full confidence that the bank is always acting in their best interests.
     “We believe this decision is both good for our customers and good for our business. The key to our success is the lifelong relationships that result from providing each customer with great value,” Shrewsberry said.
     The elimination of the sales goals “represents another step to reinforce our service culture, helps ensure that nothing gets in the way of our ability to achieve our mission, and is consistent with our commitment to providing a great place to work,” he said.
     The bank fired 5,300 people between January 2011 and March 2016 for opening sham accounts. Shrewsberry left the door open for more terminations, saying the bank plans to continue its probe into its employees’ behavior.
     While the bank’s reputation may have taken a hit, the financial institution should be able to easily pay the $185 million fine handed down by U.S. regulators. The figure represents less than 1 percent of the bank’s more than $22 billion in profit last year.

Exit mobile version