Co-operative Bank scraps sales bonuses
The Co-operative Bank has made its latest move to tap into public disquiet over what many see as the profit at all cost approach of high street rivals, by scrapping sales targets for branch staff and introducing a bonus scheme based on customer service.
The Customer Service Bonus Scheme launches today (2 October) for staff in the bank’s 342 branches. Branches and not individuals will be rewarded quarterly for “demonstrating excellent customer service”. The scheme will be replicated for the bank’s call centre staff next year.
Barry Tootell, chief executive at The Co-operative Bank, says all banks should take note and reward staff solely on customer service and not sales. “The banking industry needs to start listening to the many people who remain disillusioned with the way it operates and start taking real action to address the needs of their customers.”
The move is the latest bid to position the Co-op as an ethical customer-led alternative to high street banks. Earlier this year, it agreed to buy 632 Lloyds TSB and Cheltenham and Gloucester branches with the stated objective of “shaking up high street banking”.
Fellow non-bank financial services firms such as Nationwide have also positioned themselves as alternatives to banks such as Barclays, which saw its brand reputation plummet earlier this year when it was found guilty of LIBOR rate-rigging.
