Bank pay probe call
Big operators ‘out of step’ with customers
ONE of Bendigo and Adelaide Bank’s senior leaders has called for a review into financial services’ remuneration.
Managing director Mike Hirst, who will retire on July 2, is in Cairns this week for the Queensland Community Bank State Conference at the Pullman Reef Hotel Casino.
He said the big banks in the spotlight as part of the Financial Services Royal Commission would do well to recognise just how “out of step” they were with customer expectations.
“One of the key themes in the inquiry is that the remuneration of staff conflicts with the best interest of customers,” Mr Hirst said.
“A lot of that has been called out in financial planning. We haven’t had any commission paid for a long, long time in those services so we’re well placed for some of the things that are coming out.
“I think the work we do with community and the fact we recognise the conflicts in remuneration helps.
“I’d be getting a bit ahead of myself if I thought I could give the banks advice on how to operate but there needs to be a thorough review of remuneration across the entire industry.”
Mr Hirst said he was particularly surprised at the level of detail provided to the commission on issues which had already been reported.
Bendigo Bank operates community banks in Cardwell, Mission Beach, Babinda, Ravenshoe and Malanda as well as 11 corporate banking outlets in Far North Queensland.
The state conference held today and tomorrow will be a chance for community bank board members to share experiences and network.
Mr Hirst said $2 million had been put back into the Far North community.
The reverse-inquiry model relies on community members to start a branch themselves.
Former Queensland premier and Australian Banking Association chief executive Anna Bligh spoke at an exclusive dinner last night and founder of anti-racism group E-Raced, Prudence Melom, will address the conference on Wednesday.