Banks told to challenge customer expectations

Australian Bankers’ Association chief executive Steven Münchenberg has told banks they need to exceed customers’ expectations if they are to escape an even larger regulatory backlash.

Münchenberg said that public disapproval of banks was a problem of the banks’ own making. Animosity towards the industry had soared.

This was “the second time that the banking industry had made itself an issue,” he said, referring to their lifting mortgage rates beyond that of the Reserve Bank of Australia’s rate rises.

“At the end of the day, I think what the industry is going to have to do is things that are clearly inconsistent with what people expect from the banking industry…do things beneficial for the customers that the customers are not expecting.”

“We need to start sort of challenging that underlying assumption that the banks are only interested in themselves and not in the customers.”

Source: Banking Day