Banks told to audit cross-selling in wake of Wells Fargo scandal

The corporate regulator has written to banks asking them to review their cross-selling practices to ensure Australia doesn’t have a Wells Fargo-type problem.

Wells Fargo based in San Francisco has been embroiled in a phony-accounts scandal which has been blamed on its practice of offering employees incentives based to opening new accounts.

Australian Securities and Investments Commission chairman Greg Medcraft told a parliamentary committee hearing on Friday that he had in the last week written to the the big four banks plus Suncorp, Citi, HSBC and Bank of Queensland to ask them to audit their cross-selling activities.

Cross-sellling refers to the sale of different types of products to existing customers.

A customer with a savings account might be encouraged to buy superannuation, loan and insurance products from the same bank, for example.

Read more: http://www.afr.com/news/politics/banks-told-to-audit-crossselling-in-wake-of-wells-fargo-scandal-20161124-gsx7ib#ixzz4Qzd3BBo6

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s