COMMENT
A Tale Of Two Bankers

By Cliff D'Arcy
January 27, 2005

Bank managers aren't what they used to be – but these fine individuals are not to blame for their predicament.

Throughout history, and well into the Nineties, the bank manager was seen as a pillar of his local community. The stereotypical banker was a sober, bowler-hatted individual who strolled into his branch in the morning with an overcoat neatly folded over one arm and a furled umbrella hooked over the other.

What's more, this chap (back then, there were few women in senior banking positions) could be relied upon as a friend of the small businessman, the homebuyer and the saver. Often, you'd open your first bank account at the same branch where your parents banked. After all, your father may well have belonged to the same golf club as the local bank manager, and therefore counted him among his close acquaintances.

When the time came, you'd certainly ask for the advice of this fine fellow before venturing into the world of mortgages, investments and business undertakings. And, in time-honoured tradition, he (and his staff) would give you the best advice, balancing your interests with his employer's.

However, thanks to fierce competition among the UK's banks, the arrival of the Internet and demands from shareholders for ever-rising profits, these kindly bank managers are a dying breed. Nowadays, a visit to your bank can seriously damage your wealth!

In truth, the modern bank manager simply doesn't have time to know his clients in the way that his forerunner took such pride in doing. Instead of building relationships with customers, s/he must tackle a long list of demanding sales targets in order to keep his/her job. Modern bankers must flog hundreds of products every month just to satisfy their superiors at head office.

Some months, there'll be a big push on mortgages, so cashiers urge every customer to consider switching home loans. At other times, credit cards are flavour of the month, so these are promoted heavily in branches. But the drive to sell is always there.

Another trap is the "annual review", where your bank asks you in to "discuss the state of your finances". During this cosy chat, expect your "personal adviser" to encourage you to switch mortgages, take out a personal loan (with rip-off payment protection insurance, naturally), increase your credit card limit, transfer to a fee-charging current account, or buy a high-charging pension, investment or protection policy, such as its over-priced home, motor and life insurance. Anyone who actually buys something at one of these appointments is taking a gamble, because casual mis-selling is rife!

To be honest, I feel sorry for people who work in banks these days. My friends and acquaintances with careers in financial services tell me that working life seems to get tougher every year. Thanks to interference from the very top, the traditional role of the banker has been destroyed, leaving him/her as no more than a glorified salesperson or marketing manager.

So, the next time that your bank invites you to buy one of its excellent products, or tells you that "you've been specially selected to receive...", be very wary about what you sign up to. These days, bankers have sharp teeth, not sharp minds. If you don't shop around for every financial product that you need, expect a nasty bite somewhere down the line!

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