Banks do not focus on customers, says OFT chief – New Model Adviser®
Wednesday, 22 February, 2012 Leave a comment
Rather, the problem is that they view customers as a “means to an end” – a common complaint about firms across Financial Services!
The “shift”, that has taken place over many years, and accelerated courtesy of “light-touch Regulation”, saw the focus move from responsible lending to misrepresenting debt as credit and widespread mis-selling at every scale:
Earning loyalty and trust by serving customers with products that added value is a long, slow, process – stable and sustainable (win/win).
Chasing and retaining market share, based upon indebtedness and inertia is cheap and fast – fragile, volatile and unsustainable (lose/win).
Fingleton said that the financial crisis has worsened the situation and that concentration had increased across most banking markets.
‘At the heart of the concerns about these markets is a lack of ‘customer focus’ on the part of providers,’ he said. ‘We still have a banking sector where competition is manifestly not working well for consumers.’
He warned that ‘if we do not see real change from banks, then a more radical approach needs to be considered.’