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HSBC scraps staff sales incentives

HSBC scraps staff sales incentives

Category: Banking

Updated: 22/02/2013
First Published: 22/02/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

HSBC has confirmed it will no longer operate staff sales incentives, and will instead assess its staff on a customer satisfaction and quality of sales basis.

The move will also apply to M&S Bank and first direct, who are owned by HSBC.

The news follows Barclays and The Co-operative Bank's announcements in late 2012 that they would be scrapping their staff sales incentive schemes to focus on high quality customer service.

The Financial Services Authority (FSA) is in the process of analysing banks' sales methods and behaviours and has vowed to come down hard on those not seen to have the customer's best interests at heart.

Last year, the regulator warned all financial institutions to review their sales programmes after it uncovered "serious failings". It is believed that incentive and target driven sales structures are behind a number of mis-selling scandals to rock the banking sector.

The mis-selling of payment protection insurance (PPI), intended to cover mortgage, loan and credit card payments in the event of becoming ill or unemployed, to customers who often did not require the product has been dubbed the biggest financial scandal in the history of the banking industry.

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