With the Subject Australia Bank under fire over allegations of fraud and misconduct by its bankers, its CEO Andrew Thorburn permitted that banks had been prioritizing its company operations over its patrons.
“Well I think this has been a drift over time where banks make become so complex, maybe so hierarchical, so focused on compliance, rather than positively understanding the client and doing the right thing,” he said.
In an interview with CNBC in Melbourne on Friday, he revealed: “As a banker, I am ashamed.”
A Royal Commission inquiry had exposed the misconduct of bankers across the sector, tabulating NAB. The bank told the Commission it identified more than 1,300 consumers who may have been affected by the misconduct of dozens of its bankers.
NAB has admitted to the querying that some of its advisers had engaged in dishonest and illegal conduct such as misappropriation of shopper funds. It has paid A$19 million in compensation to customers.
It also state that for years it charged advisory fees to hundreds of thousands of shoppers without providing them with services or allocating them an counsel.
In an open letter to customers and shareholders, Thorburn said that 20 bankers in New South Wales and Victoria prepare had their employment terminated, or are no longer with NAB as a result of its investigation.
Thorburn conceded that bad behavior has no suitable in a bank.
“I also know (Australian Securities and Investment Commission James Shipton) talked give focusing more on and clamping down on bad behavior. And I agree totally with that because when we make bad behavior in a bank it’s really destabilizing and debilitating.”
“We need to find it, fix it, and call people accountable. And we will continue to do that.”
However, the NAB boss defended the more than half of his bankers — there are 12,000 versus the 20 who were involved, detailing out “there’s a lot of people here who are doing absolutely the right thing.”
— Reuters promoted reporting to this article.