The Financial Service Royal Commission is an opportunity not just for aggrieved customers, but for banks both large and small.
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Bank executive after bank executive has stood before the commission and lived up to some of their industry’s worst stereotypes.
Investment advice that caused catastrophic damage to clients’ financial, not to mention emotional, wellbeing was handed out and four-figure bills charged for the privilege.
In other cases, financial planners impersonated their own clients to superannuation groups or charged fees for no services.
There could even be criminal charges.
The good news for financial organisations is that when The Daily Advertiser spoke to Wagga residents about the royal commission, many still had faith in the banks and planners in their own city.
In light of the commission, should some customers’ intentions to consider smaller or community banks come to fruition, this would represent a great opportunity for greater employment in the region.
If alternatives to the ‘Big Four’ like Hume Bank can increase their funds under management, it would also increase competition in the wider banking sector.
And for the larger organisations and the Big Four banks, a bit of humility and genuine commitment to change can go a long way.
Federal Financial Services Minister Kelly O’Dwyer had her own lesson in the value of admitting when you are wrong.
Ms O’Dwyer, in a widely mocked TV interview last month, would not admit that the federal government should have called the royal commission earlier.
However, Ms O’Dwyer did provoke the opposite reaction when she later conceded that the banks should have faced scrutiny sooner.
“With the benefit of hindsight we should have called it earlier,” Ms O’Dwyer told Fairfax Media.
“I am sorry we didn’t, and I regret not saying this when asked earlier.”
Customers choose to bank with the Big Four for many reasons, including for the buying power and stability that a national organisation can bring, and it’s their right to do so.
One of the best things that could emerge from the commission is real and lasting change in the financial industry to protect customers’ rights and dignity in their investments and in retirement.