B. Scott Fisher is a managing director at Treliant LLC, a Washington, D.C.-based consultancy serving the financial services industry. He formerly held senior leadership positions with First Niagara Financial Group and Wachovia National Bank.
Bankers should resist the urge to skirt financial regulations, including know-your-customer and lending standards, to make a sale. The danger of penalties and a possible reputational hit is too great.
The message to banks is loud and clear: A vendor’s mistake is your mistake. You can outsource a function, but not the responsibility for mishaps.
The focus of banks' sales practices should be less about unit-based incentives, and more about developing a full relationship with customers and doing what's in their best interest.