Royal Commission on selling and salesmanship practices in banks …

On 14 December, 2017, Elizabeth the Second, the Queen of Australia appointed by Letters Patent the Honourable Kenneth Madison Hayne AC QC to conduct a Commission of Inquiry into the selling practices of the financial sector in Australia.

Such a thing could never happen in America! The doctrines of selling and salesmanship are sacrosanct in America. They are never challenged. Even the President is a self-acknowledged practitioner of American salesmanship!

But, things are different in Australia. This is an historic occasion in the history of selling and salesmanship because a world class independent inquiry will for the very first time investigate three important issues:

  1. the selling practices of banks and others in the business of selling financial services to customers in Australia,
  2. whether they are operating in the best interests of customers, and
  3. the internal sales culture that is operating in these businesses.

3 thoughts on “Royal Commission on selling and salesmanship practices in banks …

  1. Seems like these selling practices impact other industries as well -https://www.nytimes.com/interactive/2017/12/27/business/drug-addiction-rehab.html

  2. With over 4 years as a finance and mortgage broker (and 30+ years in other businesses), I see daily the hypocrisy of lender policy and procedures. There is one rule for “them” – that is branch managers with DLA (designated lending authority) – and one rule for brokers. In regional areas, they dont knock back loans – they “price” according to risk.Loan applications are loaded and they receive a “score” out of 5 – if its a 3 its approved – with or without supporting documents. If its outside of “policy”, try make it fit and then using the DLA, approve.

    Is there a conflict of interest ? How is it possible that a loan that is approved and about to settle in 3 days by one of the majors, had to be “restructured”, when the borrower asked a branch a question?

  3. Whilst useful, a Royal Commission into the financial services industry is largely motivated by politics. Most Australians would also welcome a Royal Commission into the monetary benefits that Federal and State politicians (and retired politicians) receive, and whether they are consistent with community standards and expectations.

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