MSE News: An anatomy of banks: When Martin Lewis met Barclays

toivonenforever

I used to work in the industry and left several years ago, before the collapse of Northern Rock etc; best decision I made in my life. Found it difficult to reconcile my core values to that of the industry at the time and I could see the problems that were being 'stored-up' for the future, especially the PPI horror show. I honestly don't think that it was the 'bonus' as such that was the root cause of the mis-selling, at least NOT in RETAIL banking. For staff in banking halls, the bonus payments were relatively small. I do accept that INVESTMENT banking was another matter; eye-wateringly large bonus payments linked to performance. In retail banking in the high street, I accept that, in some instances, the thought of a 'payment' MIGHT have caused some NOT to do the right thing but generally, I think that the desire to 'hang on to my job' acted as a very powerful incentive; the threat of loosing your livelihood. I remember that the pressure was so great and you were left in no doubt that unless you repeatedly hit/exceeded ALL sales targets, you'd be performance-managed out of the business. That's why I left. The though of NOT receiving a bonus did not concern me. The thought of loosing my job absolutely did. I really don't think that this has changed and the pressure to 'sell' is likely to still be there. Yes, there may not be a direct link from sales to the bonus in some banks now (including the bank mentioned in the post) and I'm prepared to believe that this is the case. However, I would imagine that you will still have sales KPI's to hit and if you don't hit them, well, then you're out; you're toast, and it won't matter a jot that you have good service scores. So, has there been any REAL change in culture? Don't know what others with previous industry experience think? On a positive note, I don't regret my time in the industry and value the skills I gained from over 2 decades in a financial environment during more ethical times.

pqrdef

John1993 wrote: »

We already seem to have far too many people who think that the banks operate as public services

And there's me thinking that servicing the needs of customers is what business is about.

Last time I looked, which was a while ago, Barclays didn't have a cash ISA for transfers in. It's a common need. So what were branch staff supposed to tell people? Were they supposed to send them somewhere else, or try to sell them something unsuitable?

The question I want to ask Barclays is, what are they for? In the jargon, what's their proposition? How should we see them? Are they just traders selling what they want to sell, or do they aim to be the complete one-stop shop for all my financial needs? If the latter, do they think they're achieving that?

To get their best credit card deal, I have to close my Barclaycard and come back after 6 months. What sort of nonsense is that? And they can't or won't try to sell me that. When I phone to close my card, they'll put me through to the Customer Retention Team, and even they won't suggest that. The introductory offer game was a shortsighted and stupid game to play.

And as already mentioned, they don't tell you about the booby traps in a 0% deal - because they need some customers to fall into those traps. They've got a product that only works commercially because sometimes it becomes a bad deal for the customer. What sort of product is that? A good business has products that are a good deal for the customer and still make a profit.

They need a complete redesign of the product set based on different principles. They need products that sell themselves because they're user-friendly, not tricksy, and do what the customer needs at a good price.

Archi_Bald

pqrdef wrote: »

Last time I looked, which was a while ago, Barclays didn't have a cash ISA for transfers in. It's a common need.

It's not a need, it is a want. The solution is simple: find an ISA provider who does provide transfers in. Problem solved.

There is - thankfully - no compulsion that all banks have to always provide the same kind of products. It's called "free market", and it is down to the ISA provider, obviously within the boundaries of their licence, what kind of products they offer. I reckon it would be fair to assume that Barclays are very well aware that people want transfers-in ISAs, but they have made a commercial decision not to offer this kind of product. They aren't alone - - many other ISA providers don't offer transfers-in ISAs.

pmduk

pqrdef wrote: »

And there's me thinking that servicing the needs of customers is what business is about.

The sole point of a business is to make money for it's shareholders, usually by providing, profitably, services it's customers want or need. If it isn't profitable, then no matter how much customers need it, it won't get done.

JuicyJesus

To get their best credit card deal, I have to close my Barclaycard and come back after 6 months. What sort of nonsense is that?

It's not exactly nonsense that Barclays won't effectively put your existing interest bearing debt with them on a 0% deal easily. That's how balance transfers work. The offer is explicitly intended for the transferring of balances from other cards.

pqrdef

pmduk wrote: »

The sole point of a business is to make money for it's shareholders, usually by providing, profitably, services it's customers want or need.

So I come back to the question I asked first - what is Barclays for? Who is it for? "Its customers" aren't a given - why do they reckon anybody should be a customer? Because they like the carpet in the branch or the shade of blue on the fascia?

pmduk wrote: »

If it isn't profitable, then no matter how much customers need it, it won't get done.

Profitability doesn't have to be addressed on an item-by-item business. If I need X this week and Tesco doesn't sell X because it's not profitable, I'll do my whole week's shopping at Asda.

JuicyJesus

pqrdef wrote: »

So I come back to the question I asked first - what is Barclays for? Who is it for? "Its customers" aren't a given - why do they reckon anybody should be a customer? Because they like the carpet in the branch or the shade of blue on the fascia?

Barclays' purpose, in common with all businesses, is to make a profit for its shareholders through providing services to customers. Clearly people want to be Barclays' customers because people keep opening accounts with them and using them.

Personally I opened an account with them because they are very technologically advanced and use that technology to make my life more convenient. Their balance transfer deal was also very good when I took my credit card out. To each, their own.

pqrdef

JuicyJesus wrote: »

The offer is explicitly intended for the transferring of balances from other cards.

I know, but why? Seems like they've got products designed to be best used by ditch and switch, but they can't be expected to tell customers that.

In fact their business model seems to be based on luring customers into bad deals, with nothing much to offer to anybody who knows what he's doing.

Is that supposed to be a credible position for a major bank? Would it work in any other sector?

BlindLeadingTheBlind

JuicyJesus wrote: »

Personally I opened an account with them because they are very technologically advanced ......

Is this "advancement" perhaps why Barclays seems also to be the chosen bank for scammers and fraudsters????

http://www.smh.com.au/national/scammed-tourists-begin-class-action-20130420-2i6xe.html

http://www.independent.co.uk/money/spend-save/barclays-accused-in-ebay-car-sale-scam-8580967.html

pqrdef

JuicyJesus wrote: »

Personally I opened an account with them because they are very technologically advanced

I forgot. You can customise your debit card.