Will a $1 Billion Fine Change Wells Fargo? A mere fine may not be a deterrent.
Wells Fargo needs a significant culture change that makes top executives more accountable. It is common for big banks (too big to fail!) to take such aggressive calls, pay fine and move on. For the financial benefit (also non-financial benefits) are far bigger than the fine payable. A small fine is not treated by some of the bankers as a ‘punishment’ either?
Wells Fargo has made a leadership change at the very top. A change of CEO, is that enough? What about the board? Better on-going supervision and execution is indeed key to prevent recurrence of these.
While all experts agree, ‘culture is the key, they also agree a cultural shift cannot happen overnight. It has to be from within, if not top-down. How many banks or corporate want to go through the transformational experience of a cultural disruption?
A new culture should place customer interest ahead of their own
Ethical people, sound processes are the key. Also, criminal accountability in BFSI?
What about the customer?
‘once you are in, no matter how mad they make you, you are stuck with your bank?!’
There seem to be complete unanimity bankers will find new ways of doing these things to boost short-term income, at the cost of long-term health of bank, banking and their own legacy.
Wells Fargo is merely a metaphor. These are applicable to all in banking, BFSI and corporate world. Even not-for-profit and governments?
Do we learn from others’ mistakes. Can central banks, regulators and other agencies be ahead of these ‘smart’ players?
As we celebrate 10 anniversary of 2008 financial crisis, pls stand by more such incidents of our greed, myopic policies and lack of transformational, sustainable leadership.
Executive Coaching, Coach Training and Leadership Development, also combined with Counseling and healing at www.regalunlimited.com can help organizations, teams and individual leaders to make a choice and work towards changing the corporate culture. The earlier the better.