RK had a solution for the challenge faced by retail banks which is to sell money. He suggested that cross-selling should be done. N bank got merged with WF bank and RK became the President and CEO of WF bank. The most important goal according to him was revenue growth and it can be achieved by cross-selling. Bankers were given targets and bonuses for better selling. The bank’s stocks saw a 67% increase from this transformation. This culture however created a lot more pressure on bankers. When problems started to emerge, RK was not the President and JS was the President. When the problem was investigated, rogue bankers were found and hence they were fired. The WF bank was fined by OCC for opening fraud accounts for which WF bank blamed the employees and not the culture. However, the inside story was different as employees told that due to immense pressure all this fraud happened and somehow bank was aware of this. When JS resigned, TS became CEO, and he removed the label of stores from banks and changed the incentive plans. The focus was now customer satisfaction and sales goals were also reduced. However, other scandals did happen in banks that were charging many customers for insurance who were taking car loans. The bank suffered a loss in reputation and ranking. Also, many penalties were charged. To explain: The steps that can be taken by regulators to change the culture of the bank and to prevent these kinds of problems in the banking industry.

Question

Want to see the full answer?

Answer 1

Question

Chapter 8, Problem 3FD

Summary Introduction

Case summary: RK had a solution for the challenge faced by retail banks which is to sell money. He suggested that cross-selling should be done. N bank got merged with WF bank and RK became the President and CEO of WF bank. The most important goal according to him was revenue growth and it can be achieved by cross-selling. Bankers were given targets and bonuses for better selling. The bank’s stocks saw a 67% increase from this transformation. This culture however created a lot more pressure on bankers. When problems started to emerge, RK was not the President and JS was the President. When the problem was investigated, rogue bankers were found and hence they were fired. The WF bank was fined by OCC for opening fraud accounts for which WF bank blamed the employees and not the culture. However, the inside story was different as employees told that due to immense pressure all this fraud happened and somehow bank was aware of this. When JS resigned, TS became CEO, and he removed the label of stores from banks and changed the incentive plans. The focus was now customer satisfaction and sales goals were also reduced. However, other scandals did happen in banks that were charging many customers for insurance who were taking car loans. The bank suffered a loss in reputation and ranking. Also, many penalties were charged.

To explain:The steps that can be taken by regulators to change the culture of the bank and to prevent these kinds of problems in the banking industry.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

As you are finishing this week’s report to the management team, you will be focused on which approach to use for staffing the new operations. There are four approaches to consider, ethnocentric, polycentric, regiocentric, or global. You will need managers, administrative staff, and plant workers to begin operations. Initial Post Instructions Taking into consideration of the Philippine culture and education levels, which of these four approaches would be the best approach for your expansion plan? You may also select a hybrid approach. Explain your reasons for this selection. What is your top requirement in determining who to hire? For example, is knowledge and ability the most important skill set, or ability to adjust to change, or a growth mindset, or what other area do you believe is essential for the success of the expansion plan?

For University of wales trinity saint david ,UK- : Comparing with university of the west of scotland and university of south wales , why university of wales trinity saint david is better than other university? focus on international student

About this Assignment As organizations grow, particularly in the global space, change is inevitable. As businesses take on a more global facing model, management must be ready to facilitate the changes that ensue. This means creating plans for introducing and managing change. Lewin's 3-Stage Model of Change and Kotter's 8-Step Change Model are widely used to help overcome barriers to change in organizations. Drawing on what you've learned in this course, please choose one of the following prompts and write a 2,000 word (minimum) report to address it. Prompt 1 You are in upper management for a mid-sized manufacturing company. Recent economic changes forced upper management to move much of the manufacturing to a foreign country. As a result, many of the state-side employees will be forced to work directly with foreign counterparts. There is great concern that the existing employees may not embrace the change, and you've been tasked with creating a plan to minimize the fallout. Develop a…