Apr
29

Debt: making the world go round

Money makes the world go round, so the saying goes. But what really makes it go around is debt.  It’s what caused the global financial crisis.

When we look at massive, ruthless banks like Goldman Sachs, playing with billions without caring what happens next—or countries like Greece, drowning in debt it cannot pay off—it’s easy to think that the problem is so big, we can’t do much about it.

But big pictures are made up of millions of little ones. You, your neighbours, your community.  The choices we make every day decide whether we’ll have another global financial crisis or not.  I know.  I work in a bank.

The work I do has a direct effect on how you live.  Whether it’s helping you apply for a home loan, or upping the limit on your credit card, I’m not selling you a hamburger or a stereo.  I’m selling you something you might be paying off for 30 years.

That’s a long time.  And that credit card comes with a high interest.  Add it all up, and how you manage debt—and how I sell it—has a big impact on you.

So it goes without saying that I want to do my job responsibly. But right now, I have targets I have to meet for new home loans, or personal loans, or higher credit card limits.  And I’ve no say in those targets.  If I don’t meet them, I run the risk of losing my job or not getting even a basic, cost-of-living raise.

That’s not great.  I’d like to see you more as a person, not an opportunity to flog another product.  And that’s why I think now’s the time for better banking.


Louise Arnfield, President FSU CBA National Enterprise Council and bank worker

April 29, 2010   //   Uncategorized   //   5 Comments   //  
  • Nina

    I used to work in a bank and every year there is an annual increase in the wages depending on how the EBA negotiations were done. The bank that I worked for gave all staff a 4% pay increase each year. The targets that Louise talks about affect whether or not she gets a bonus for meeting those targets – that’s completely different to a cost of living increase in her wages. She’s right in that the branch staff don’t get a say in how high the targets are set.

    I left the bank after becoming ill and decided not to go back because I think that targets for bank staff are crap. People come into the bank to do transactions, if they want to speak to someone abbout other products, the majority will ask.

    Don’t think that I am out of touch with how it is, the last time i worked in a bank was in January this year.

  • Cyclone

    I am currently employed in the Bank and at this stage I have been told to lift my performance or a plan will be put in place (CIP), but during the last 12 months my dad has been diagnosed with a chronic illness and as I type this he is in hospital. At no stage have they taken into account the leave I have had, nor have they taken into consideration the fact that I myself had an accident and broke a couple of ribs and damaged my leg bery bad, had my mum in hospital twice, had a car accident and then the following week my partner had a car accident and the car was written off. At no time have they ajdusted my target or given me an leeway. I thought the Bank was able to give you work, life balance. The only people that have given me any support in all of this is my colleagues, oh and I forgot to mention they have stopped me from accruing time to enable me to go to the doctor with dad and they have made me take annual leave cause I had too much accrued. And unfortunately in March this year they reduced my hours. I glad that Mr Norris got his bonus. I would like to see some of the ivory tower workers come out and show me how to acheive my minimum daily goals.

  • Fed up

    At my last review last year I got a “needs improvement” result which meant I was ineligible for the pay rise in January. My manager has suggested that, perhaps, I should look for employment elsewhere as I almost never reach my sales or revenue targets. I have been with the same bank for over 14 years, but now I am made to feel that I don’t do my job to their satisfaction!! When will they realise that raising revenue for the bank is often not what is best for the customer. I have heard of some very shifty practices happening in some branches, all to ensure the branch reaches its targets.
    Also what happens is you are expected to work overtime, usually half an hour or more, most nights, and all for free!!!
    I resigned two weeks ago. I am fed up.

  • True Lender

    I also work in the Bank and a home loan lender, EBA states we should have a say in our targets, but never is this possible, we either make comment on what is set and this is recorded on our file. I feel that as a lender one of the rules is responsible lending, that means can the customer really afford and maintain this lending and will this customer be able to meet the commitments and not put the Bank into a position whereas it has to foreclose on the customer. The pressure our level our targets are set stretches this point to the utmost and it has now come to the point that now if we are not meeting targets we have been threatened with special review, demotion and in the end will result is dismissal. I feel to maintain our customer base and increase this including all; with a clear conscious is much better result for our employer than putting customers and the bank in a comprising or detrimental position. The bossess need to come and look at reality rather than targets.

  • Lisa Steedman

    I just wanted to thank you for writing this blog and for bringing awareness to such an important issue. Several years ago, I took a break from full-time work to become a carer for my partner. During this period, the costs of living and medical expenses etc soon became a juggling act, and accordingly, when I received a letter from my banking institution offering me a pre-approved credit increase, I quickly accepted, believing I would be able to pay back the debt upon my return to the workforce. My amount of debt quickly grew, and the “pre-approved credit increase” letters issued like clock work whenever my credit limit was fast approaching. The trap came when, now struggling with enormously high credit card repayments, I asked to consolidate my credit card debt into a personal loan (to at least try to lower my interest rate). I was advised by the bank that my debt had now surpassed my assets. I was now “a risk to the bank” and therefore denied a debt consolidation loan. After being denied the debt consolidation loan, the bank, against my direction, sent me further pre-approved credit limit requests. Through my own hardship I can now say I understand the danger of credit cards and personal loans and how this type of insidious debt is crippling and life changing. It saddens me that as recently as this week I heard a friend of mine say she had been approved for a $20,000 credit card. I pray she has the sense to decline.