A soldier laid down his life defending the country. He is someone’s father, a husband, or a son. That someone receives some compensation. The orphan, the widow, or the parent who has lost his offspring at the border goes to the bank. 1/
They are going to entrust the bank with the compensation. They are grieving and have their guard down. The bank manager, meanwhile, has become an expert over the years guiding the innocent depositors towards the sacrificial area. 2/
Because what the bank manager sees is an easy and vulnerable prey that can be led to the altar and encouraged to invest in a bancassurance product. 3/
After losing a son, a husband, or a father, the depositor is now about to part with the compensation so that the bank manager can meet the aggressive bancassurance targets assigned by the senior management and earn that trip to Thailand/Russia etc. 4/
“The sufferers [of bancassurance] are not only the businessmen but also poor widows, clerks, drivers, house-wives, villagers, small farmers, laborers, overseas Pakistanis, and families of armed forces’ martyrs.” — Federal Insurance Ombudsman Report 2020 5/
This is the next cadre of senior management, the future banking leaders, that these corporate titans are training with a moral compass that permanently points south. Widows are their favourite targets followed by the retired elderly. 6/
Meanwhile the regulators SBP and SECP keep issuing circulars which have had absolutely zero effect on the sales of these products. 7/
The banks continue on pushing the bancassurance products. In 1Q 2022 UBL posted a growth of 25% in commission on bancassurance over the same period last year 8/
People will blame the manager but it’s the senior management that pushes and incentivizes the branch staff for this 9/
Who is this “senior management”? As we learnt in the Wells Fargo “cross selling” scandal, the buck stops at the very top who had given aggressive and unreasonable targets. https://t.co/WTLU7vLPkV In our case, we know that the top people are the owners or their rep 10/
corpgov.law.harvard.edu/2019/02/06/the…
HBL, UBL and MCB each made Rs.30+ billion profit in 2021. They have absolutely no need to scam the elderly, the widows, the villagers, families of martyred soldiers out of the hard earned saving but they say “money has no smell” 11/
This is my fourth post on the topic and every time I tweet/write on the topic, I wonder what SBP is doing apart from issuing useless circulars as it is the bank manager that is betraying the trust of the widows, house wives, villagers etc . 12/
Shaytaan aap ko ye post share karnay say rokay ga. Please share it widely so that there aren’t more victims of this vile product 13/13
dmkm.substack.com/p/bancassuranc…
Bonus feature: Harvard laws report on Wells Fargo cross selling scandal.
corpgov.law.harvard.edu/2019/02/06/the…
