The Commonwealth Bank has decided that its branch tellers will no longer get cash for selling the bank’s own products to customers.
The major banks have faced questioning in a parliamentary inquiry over the practice of paying tellers bonuses for selling to customers. Many have argued that this meant customers could be encouraged to buy products they don’t need.
The CBA says about 2000 tellers — now called customer service representatives — have been moved to a new remuneration plan focused on the individual’s contribution to providing superior customer service.
Links to financial measures have been abolished.
“This change will reward our tellers for continuing to provide superior service to the millions of customers we serve around the country,” says Commonwealth Bank executive general manager Angus Sullivan.
“We have been listening to our customers and this is another step to ensure banking is fairer, simpler and more transparent. Customers can be confident that our tellers are not being paid to sell them products.”
The measures will be backdated to July 1, the start of the current CBA performance period, removing financial measures from individual performance.
About 200 Bankwest branch tellers will also move onto a customer-focused remuneration structure from October 1.
The bank’s board of directors have axed short term bonuses for CEO Ian Narev and his senior executives following the money laundering scandal.
The financial intelligence and regulatory agency, AUSTRAC, has taken the Commonwealth Bank to the Federal Court for alleged breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act involving combined cash deposits of $624.7 million.
In August the bank posted a 4.6% increase in full year cash profit to $9.88 billion and a 7.6% surge in net profit after tax to $9.93 billion.
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