Use and Dump Mechanism of Banks

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The competition in the banking sector has become extremely tough that bank staff especially the market facing members engage in constant aggressive marketing in order to win businesses and also meet assigned targets. Marketers are saddled with the responsibility of ensuring that new customers are signed on to the bank and new businesses are won. It is on this bases that these marketers are being appraised.

They are mandated to bring in deposits ranging from hundreds of millions of Naira to billions of Naira within a time frame of mostly two to six months depending on the bank. Besides the unreasonable deposit targets, the time frame to achieve these targets is equally unrealistic.
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For some banks, the monthly salaries of their staff members is structured in such a way that a sizeable chunk of it is tied to meeting these unreasonable, unrealistic and most times unattainable deposit targets. When these targets are not achieved, the staff get a pay cut and go home with a fraction of their monthly pay. This pressure forces the marketers to engage in all manner of activities in order to meet these targets. It is no news that a lot of these marketers especially the females, sleep around with men around town in order to meet up with their targets and also to keep their jobs.

The other trick used by these marketers in order to meet up is what I call the use and dump mechanism. They see a prospect and promise heaven and earth to the person on the ground of opening account with the bank. At this time, the banker and his bank can do anything for you. They will promise to grant every of your loan request and some will even promise to give you a loan and leave you alone (loan without collateral). Don’t forget that this people have ‘sweet mouth’ and if you are not careful, will fall for it.

The easy way they go about this is by telling you to operate your account very actively for the next 6 months and that all your request to the bank afterwards will only be a call away. Well, for some banks, they keep to their words especially when the request is within their approved product paper, but most times, they become invisible as soon as you make a request. You will only feel fooled after having ensured to channel all your transactions to that bank. This use and dump system also explains why most business individuals have accounts in almost all the banks and end up finding it difficult to keep record of their finances.

Anyway, I still feel this form of unprofessionalism is way better than sleeping around in order to meet targets. Whatever the case may be, I will like to plead to the management of banks to be more realistic when setting deposit targets. It does not even make sense to give deposit targets in the first place as I believe there are other better ways staff performances can be measured.