At least 3 or 4 times a year, I find myself uttering this phrase “Banks are not our friends.”
Understand that I realize great people work at banks. I’m not talking about people. I’m talking about systems and what drives corporate behavior (profits).
But, you probably already know this… right?
It should not be a shock to learn that large corporations are not in the friendship business. I know, I know–the commercial ads are beautiful and speak to us as though we matter. I would argue that sales quotas and incentives often matter more than the clients.
Recently, A news organization wanted to explore the corporate sales culture for banks. They went undercover to see for themselves. The news team released footage of instances where advisors who work in the big banks may have been incentivized to push investment advice and certain products.
Many consumers could be ignorant to the idea that the incentive structures inside of large banks and credit unions can work against the best interest of the client. I’m not suggesting that all advisors who work at banks are bad. I’m not saying that banks are bad.
I am saying that anyone offering you financial advice and wanting to serve you in your finances have only one duty of loyalty– to you and you alone.
Look at the storyline beginning around the 8:15 mark: