Big Bank Employees Speaking Out About High Pressure Sales
16th Mar 2017
On March 15, 2017, the CBC News program Go Public published a story about employees from all five big banks in Canada saying they feel pressured to meet unrealistic sales targets and will upsell, trick and even lie to customers.
Go Public said it has received nearly 1,000 emails from employees from RBC, BMO, CIBC, TD, and Scotiabank locations across Canada describing high pressure sales tactics used on customers. Go Public has said “the deluge is fueling multiple calls for a parliamentary inquiry.” It says NDP finance critic Alexandre Boulerice is calling for a parliamentary inquiry into the sales practices of Canada’s banks.
In early March, 2017, CBC News published a story about TD Bank Group employees discussing the “incredible pressure” to sell unnecessary products to customer to increase profits.
Speaking to the CBC news segment Go Public, the employees say their jobs are like a used car salesman who upsells to reach sales targets.
Go Public said it has been told by TD tellers in other cities they have quit their jobs because the pressure to push products has become so extreme.
The high-pressure sales tactics employed by TD Bank are obviously working. On March 2, 2017, TD Bank Group announced first quarter reported earnings were $2.5 billion, up 14% compared with the same quarter last year. Revenue rose six per cent to $9.1 billion. TD Bank is now the largest bank in Canada based on assets.
Go Public said it has documents that show tellers who fail to reach their sales goals are called “underperformers” and placed on a “Performance Improvement Plan.” The plan involves daily coaching and monitoring by managers. Sales improve or the employee is terminated.
Vertuity Mortgage openly discusses it customer service process and talks about the big banks and the kind of service a customer can expect.
A mortgage broker is a licensed mortgage specialist who works on your behalf with multiple lenders including major banks, local credit unions and other financial institutions. The broker is paid a commission by the lender providing the mortgage.
The mortgage broker can’t use high pressure sales techniques and stay in business very long. The local mortgage broker, like Vertuity Mortgage, relies on referrals, word-of-mouth, and relationships within the local community to grow. If mortgage brokers used the high-pressure sales techniques of the big banks described by Go Public, they would be out of business.
TD Bank has 1,150 offices across Canada. It can afford to use high pressure sales techniques on customers. TD Bank doesn’t rely on close relationships with customers.
Vertuity Mortgage, on the other hand, needs close, intimate relationships with customers earned by providing excellent customer service.
Vertuity Mortgage has a program called “The Hassle Free Process.” It’s a step-by-step process that guides the customer through the mortgage process. Vertuity Mortgage works with the customer each step of the way to reach a successful conclusion – the right mortgage at the best rate.
High pressure sales is one place Vertuity Mortgage knows it can’t keep up with the big banks.