Banks are handing upsize your debt

out bonuses to staff who

by: Helen Pow From: The Sunday Telegraph

Commonwealth Bank ATMs near Central Station in Sydney. Picture: Alan Pryke Source:The Sunday Telegraph

BANK staff are being offered Christmas party bonuses, free meals and other prizes topush more credit cards, loa s, insurance policies and other products to customers.

Australia's biggest lender - the CBA - has launched a "double up" campaign to push personal bankers and tellers into selling twice as many products, such as increasing credit limits, each week.

The other three major banks - the NAB, ANZ and Westpac - are also forcing branch staff to meet stringent weekly sales targets as the "big four" battle for market share.

An internal CBA document obtained by The Sunday Telegraph reveals the pre-Christmas push to supersize customers - increase their credit limits, convince them to take out home and contents policies and open up new accounts.

"We are under increasing pressure from competitors who are looking for a greater share of our retail banking business," CBA retail banking boss Ross McEwan says in the document.

The briefing reads: "The campaign encourages sales teams to double their sales productivity during October and November to earn double the fun (and funds) at their end of year team celebrations."

Staff at the four major banks, which are expected to record a combined profit of $24.2bn this financial year, have also revealed the tactics used to win over customers.

Sales targets differ depending on the branch size and location. Convincing a customer to roll their credit card debt into their mortgage is a target winner.

At Westpac, each personal banker has a revenue target of about $3750 a week.

Selling a credit card earns $150 towards that goal. At NAB, a city branch with four staff would have to sell 72 products a week, while a teller has to make 10 "quality" referrals to personal bankers that result in a sale.

Personal bankers have to sell 13-16 items. Debt products are worth the most because they are more lucrative for the bank.

All banks encourage staff to "cross sell" so when a customer opens a savings account, staff are likely to offer an increased credit card limit or income protection insurance.

"Staff get really desperate, to the point where they will convince customers they need something when they really don't," a Westpac staffer said.

Financial Services Union NSW secretary Geoff Derrick said: "What it means for customers is that it is hard to be certain when you get advice at your branch whether it is based on your needs, or their desire for job security or a bonus."

The banks defended their sales targets.

"At no time are staff encouraged to recommend products that do not meet customers' needs," a NAB spokeswoman said.

The ANZ said it was confident its performance objectives were appropriate. The CBA said it had worked hard to ensure targets and incentives were "fair and achievable".

A Westpac spokesman said their branch teller sales targets reflect industry standards.