Member Article

BBA chief challenged to restore banks’ “moral compass“

British Banker’s Association’s (BBA) new chief has been warned by the CEO of customer advice charity Which? to use his position to transform the sector.

Peter Vicary-Smith, chief executive of the product-testing organisation, said in an open letter to Anthony Browne that this was a “golden opportunity” to bring an overhaul to the banking industry and renew public trust in bank leaders.

Mr Vicary-Smith advised Mr Browne to “ seize the opportunity to transform a sector that ordinary people believe has lost its moral compass.“

Which? found that 71% of people do not believe the UK banks have “learnt their lesson from the financial crisis”. This shows a 10% rise from September 2011.

The consumer advisor suggested five strategies to reinstate public trust in the banks. Which? said BBA should prioritise customers, push standards to become more accountable, establish the voice of BBA, show strong leadership and accelerate reform.

BBA represent over 200 banks in the UK, and as the Head of the association, Mr Browne has been urged to champion customers as the main concern of banks, rather than bankers.

Mr Browne was appointed as the Chief of BBA in June, to succeed Angela Knight. On his appointment, he said: “ We need to continue to lead on reform, ensuring the banking sector meets the needs and expectations of our customers and shareholders.

“In a time of change and uncertainty, the BBA has a critically important mission to ensure the banking sector returns to health, remains in Britain, and has the trust of the public and politicians.”

The previous economic Mayoral Policy Director for Boris Johnson described the banking sector as being in “a pretty low place” on his first morning in the new post.

Mr Vicary-Smith said banking leaders had a pivotal role, and concluded: “I hope you will lead by example, working with the banks to take real action to reform their practices, rather than defend the status quo or wait for Government or regulators to impose change upon them.”

This was posted in Bdaily's Members' News section by Miranda Dobson .