When I worked in a bank, a bank employee lived or died by how many inappropriate 'products' they sold to unsuitable people, ie their monthly targets. It was indeed this cavalier attitude to customers and customer service which drove me out. I just couldn't pretend that we offered the best mortgage rates on the High Street when we didn't.
Now we read daily that the majority of banks are no longer lending to customers or granting mortgages even to those who would not so long ago have been judged 'a good risk', but in all probability would have got that 100% mortgage even if they were a lousy risk, just to get some bank employee's targets up to their monthly quota. No big deal if a house was repossessed to be sold and mortgaged again after all.
Horror stories abound of successful small businesses with good track records who merely require a small bridging loan until their new stock arrives or their bills are paid and their cash flow restored, going to the wall because of the refusal of banks to help with what was once everyday business for them. The bank managers who once knew their customers personally and interviewed the business customers on a regular basis are nowhere to be seen.
The deliberately-low (to aid the economy) 0.5% base rate seems to have no influence on their unreasonableness and no interest rate advantage is being passed onto the customer, even supposing we are lucky enough to be granted the privilege of being a customer.
I have but ONE question. How are banks making their money now if they are no longer selling products/lending money?
Sure they can coast along on exorbitant customer charges and zilch customer account interest for a while, but new business and extra business is where it's at.
Just because we wanted them to stop gambling with our money and selling us down the river, only to end up having bail them out, doesn't mean we wanted them to stop providing financial services at all. In fact if anything, they OWE we taxpayers for bailing them out and we expected better treatment and more humility from them as a result.
All we wanted was some integrity and some transparency and less greed. Most businesses can manage this - why not banks?
Then again, even Tesco rejected me for a credit card the other week.
I'll leave you with my story of the week on banks v the people.