When Wells Fargo announced quarterly earnings on a Friday morning, it was clear that many of his customers were not exactly satisfied.
In recent months, the number of new consumer control accounts has dropped dramatically, which is not surprising for a bank that has paid heavy money in September to open accounts of all types without customer permission. Only for good measure, he is trying to force customers who want to sue to bring their disputes into mandatory arbitration. And in his earnings announcement, the company said that measurements of “loyalty” would have to take a little longer to recover.
To many consumers, Wells Fargo deserves a sort of death penalty: in the same way you could never buy a car from fraudsters at Volkswagen, it makes no sense to do business with Wells Fargo.
But just as good reason to avoid clarity might be this: its products and services are mostly mediocre. The bank is rarely a leader in prices or prizes. It is specialized in ubiquity, with stores in all 50 states and hopes we will be too lazy to find better deals elsewhere.
The bank claims to be seriously able to rotate now (despite having only pooled the deck chairs in its executive role, cutting off its C.E.O. and raising its first deputy). So if you want to support something in the minds of consumers, besides pushing unwanted products into people’s throats, you might try new approaches – such as generosity, clarity, integrity and good citizenship – by size instead.
MISSTEPS AND SCANDAL
From accounts unrelated to customer data release, Wells Fargo has attracted negative attention several times last year.
Incorrectly Released Client Data “There are thousands of documents here that the public should never see,” said former employee Wells Fargo.
Improper mortgage changes “When I realized it was a filing model of fake documents at the federal court, which was scary,” said a lawyer who hired the bank had made a clerical mistake.
$ 185 million for endless accountsRegolators have stated that illegal practices, reported for the first time in 2013, have reflected serious shortcomings. The bank has fired 5,300 mostly low-level employees.
“These are the people who were holding the bag,” a lawyer told workers who did not create incorrect accounts and did not reach sales targets.
“Lions Hunting Zebras” In opening these accounts, the bank was concerned with immigrants who spoke little English and older adults with memory problems, said former workers.
Scrutiny for U5 Files “It’s like being colored,” said a lawyer specializing in Finra’s arbitration. “It can be a showstopper for a career”.
Breaking Customer’s ChargesThe bank is killing the causes by transferring them to private arbitration. “It’s ridiculous,” said a woman who denounced disagreeable accounts.
GENERALITY Consider Wells Fargo’s basic account offerings. Or, not to be offended by interest rates. How does it play you 0.01 percent? But if you have more than $ 100,000 that you have to keep for a while, the bank will increase the sum ten times, to a huge 0.1 percent!
Is there anything to be a big financial institution that makes it impossible to offer a competitive interest rate? Not at all. Families like Barclays, Discover and Goldman Sachs are happy to give you at least nine times what Wells Fargo does.
The news is not much better for credit cards. While American Express, Citi and Chase consume consumers with bonuses and benefits, Wells Fargo prepares for cash back and rewarding card lines that are not the leading leaderboard for broadly.
Its bankers do it because they can, because they have been entrusted for years to a culture of intrusive sales in the branches where even the people who actually said “yes” to the fields were not able to compare them at that time. So the bank does not need to have the best products.
That touch of mediocrity can no longer work. Consumer credit applications declined by 43 percent in December 2016, compared to the same month of the previous year. The new Wells Fargo script could go like this: Many of our bankers have tried to use your worst possible ways, so we get the reason why you’re away from our cards. But now we have to give more things to all of you that you remain faithful to us in our moment of contrived profession.
Here’s an idea for beginners: given its leading position in mortgage lending and mortgage services, the bank should double what it pays on its cre-card