Mon. Feb 17th, 2020

Your Bank Advisor Is Not Your Friend

Many people put their hands to their heads when they hear the barbarity of millions that banks earn every year when they present their results. However, those same people then go to their bank branch and let themselves be advised by their business manager or financial advisor.

When I ask one of these people why they do it, they usually tell me that their advisor is their friend. A trustworthy person with whom they have been many years and who can be trusted.

And yes, they may get along very well with their advisor at the bank, but they forget that that advisor works in a bank. And that the banks have assembled all this shed to earn money. In short, banks are a business like any other, which seeks to obtain benefits. And if you didn’t know, I’m sorry to have to be the one to say it, but your bank’s advisor is not your friend, even if he leaves with you or invites you to a coffee.

It is sad when one discovers the truth. But most companies use people trained in sales techniques or with an innate ability to persuade and coax in their commercial area.

There is something true in the financial industry. And today is probably the most hyper regulated sector or business. All the regulatory changes introduced have made everything a little more complicated, applying a varnish that makes them seem otherwise.

But that appearances do not fool you, the commercial banks, with their telemarketer’s centers and their network of offices, remains nothing more than a powerful sales network. With an ability to distribute and place almost anything they propose.

Lately, in some entities, it has given them to sell tablets, smartphones, televisions, and even renting cars. And believe me, they sell more than establishments that are exclusively dedicated to selling these products. What will be the following?

The efforts of forcing the sales force of the banks to obtain a financial certification or accredit some knowledge to be able to advise have remained in a lax requirement that can be easily obtained so that the same can be done as before.

Commercial banks are a business set up to slowly transfer money from your checking account to that of the bank. Commissions and interests. There’s no more. The mechanism is increasingly sophisticated, but it is still the same as always.

Modern financial advisors are asked for degrees and certifications in order to access the job. But not so that they know how to tell customers how and where to invest. Because then internally in the bank, they are trained so that they know how to sell what they are interested in.

But beware, they are not trained to be aggressive sellers, but to learn to make customers subtly believe that they care about their interests and needs. And so, keep earning money with them without feeling cheated.

Because let’s be clear. The bank does not care if its clients earn or lose money with their investments, what matters is that the clients remain hooked or invested as much time as possible to continue taking out euro to euro commissions and to be happy while doing so. That is what they call satisfied and profitable customers.

A client with a good income who asks for a mortgage is a long term business. It is one more cow that enters the barn for many years, which can be milked for a long time with ties and cross-selling.

I insist, your bank’s financial advisor is not your friend. You can see him if you want humanly, as a person who has a terrible conflict of interest, because he is forced to offer bad products every day. What does he have? For that, keep and continue to collect a salary above average with succulent sales incentives, which would not pay them anywhere else with their knowledge and training.

The difference between the commercials of banks before and now is that in the past, many do not even know what they were selling. And today, due to the necessary training, more and more are aware of what they do and many suffer, being forced to sell through terrible commercial pressure, products that they would never buy for themselves or their families.

Fortunately, the digitalization process that these same managers are implementing in their business model will free many of them from their suffering in the near future. Well, many of them will be fired and replaced by online sales funnels, landing pages designed to capture customers and virtual consultants.

But until the life cycle progresses, people in banks are still needed to make money with other people who are not digital natives.

I want to make it clear that I am not against banks earning money. Not much less. It is a business, and they have as much right to obtain benefits as the one that sets up a clothing store or the one that sells ham in the deli. But I think it should be a more ethical, honest, and transparent business. That completes not so much in product and more in quality of service.

I think that the best slogan with which a bank could be advertised today is one that says something the closest to “we do not cheat and charge a fair price .” But make it true, of course. And honestly, I don’t need the bank advisor to be my friend, so that they are clear and give me service, it is worth it. I am a reasonable person, and I understand that certain things cost money. In fact, so bad is that something has an abusive cost as it is totally free. Because in the latter case, what usually happens is that if you don’t pay money, it’s because the product is you.