WellsFargo CEO is booted out for the company and the replacement has a hard task ahead of her. With the image of Wells Fargo tainted and the consumer banking customer having many questions around the integrity of their bank accounts, what are the next steps for Mary Mack, Wells Fargo Banking Chief?
The first step is a change in the sales culture from one that has left in imprint of scandal to one that needs to represent trust and servitude of its customers. How can this be done? Its needs to first start with how to incentivize its sales force without out the unneeded pressures for cheating to meet heavy sales goals at the cost of a fragile customer base. The bank has been fines $185 billion million dollars and an image that is extremely tarnished.
In the wake of the bank’s settlement the company scrapped all sales goals but will keep its cross selling initiatives in place that helps its customer with purchasing other services from Wells Fargo and what now appears to be the culprit to the misconduct of its employee’s. There are 100,000 employee’s at Wells Fargo and over 6000 branch stores and figuring out the retail-branch initiative structure it vital in next steps for the bank. What caused the problem were sales goals were set so high that they were unobtainable and this caused immense pressure for low wage employee’s that felt they needed to cheat to keep their jobs. This seems to be a problem not only at Wells Fargo but in many company’s. What was the outcome, over the past five years branch employee’s opened over 2 million accounts without customer knowledge.
Wells Fargo has a $185 million dollar fine, an image that will cost marketing millions of more dollars to turn the impression of Wells Fargo around and an employee base that is lost in direction and still wondering if they will lose their jobs. This time not because of lofty SALES goals but rather s shrinking customer base.
I bank at Wells Fargo and I can say there has been some thought for the first time on my long marriage with Wells Fargo to leave the bank. The only reason I do not is because Wells Fargo has done a great job in keeping me happy through their cross sales efforts and I have multiple service through the bank.