Lloyds Banking Group is the latest high street banking brand to announce changes to its staff incentive scheme.
The emphasis for the new system, which will be piloted for retail staff in 150 Lloyds TSB and Halifax branches, will be on retaining customers.
Part of industry-wide reforms
Lloyds’ decision to trial a new incentives scheme follows calls from the Financial Services Authority to stamp out bonus schemes that reward sales volumes over suitability, as they have the potential to encourage mis-selling.
Earlier this month, The Co-operative Bank became the first high street bank to announce changes to its staff incentives so that customer service takes priority over sales, with Barclays following shortly after.
Lloyds issued the following statement: ‘The incentives pilot we are currently trialling across a selection of Lloyds TSB and Halifax branches focuses on retaining our customers. We review our incentives schemes on a quarterly basis.
‘We believe we have a responsibility to our customers to help them manage their money in the best way possible.’
Which? Big Change campaign
The announcement by Lloyds Banking Group follows the recent launch of the Which? Big Change campaign that calls for banks to put customers at the heart of their business. Currently only one in ten people say they trust bankers to act in their best interests.
Prioritising customer service over sales through appropriate bonus schemes is one of the main focuses of the campaign.
Increased PPI provisions from Lloyds Banking Group
The news comes in the same week that Lloyds is expected to announce that it will be setting aside more funds to cover claims relating to mis-sold payment protection insurance (PPI), on top of the £4.3 billion it has already earmarked.