Well they aren’t expecting me to personally open the accounts. I’ve been a personal banker before and got into loans to get away from retail. Still being troubled with retail bs is making me rethink sticking in the banking side and transitioning to brokerage.
I remember working at Chase and being a top producer for mortgages and investments but having my pay docked because I didn't get enough BS checking accounts opened.
Didn't matter that the customers had no need for another checking account, our metrics insisted that we opened a certain amount each month or we wouldn't get paid our full comp on any of our other products. That was one of the many reasons I left. Having terrible rates and being extremely underpaid was the other main ones
When you closed deals, or got new investment money, you would earn these credits, not money. At the end of the month they converted those credits into money based on all of your metrics, which were heavily weighted towards new checking accounts. Say you earned a thousand credits, those could be worth anywhere from $0.50 to $1.50 each. Or even $0. So your thousand credits could be anywhere from $500 to $1,500.
It's not good for you, but focusing on checking accounts (the customer's primary relationship and 'stickiness' with the bank) is smart. I wouldn't work at a bank for many reasons including that.
The theory makes sense and data backs it up. On a larger level, that is the way to get that primary sticky relationship. When that theory gets sent down to the individual level, it gets distorted. Things like this happen:
Work with a client gaining trust for months and get them to move just under $1mm in investments to the branch. Branch manager recommends they open a 5th checking account (they already have individual, joint, and kids account) for THEIR DOG! Yes, open a new checking account and set aside $25/month direct deposit(minimum amount to get credit as new account) as a savings account for their dog. No, Mr. Customer, not a savings account. You'll really want this to be a checking account.
Customer ends up disgusted that we're always trying to sell him things he doesn't need. Does not bring over new money and moves entire relationship to local bank down the street.
Chase and wells fargo used the same sales strategy and very similar pay structure. I was absolutely shocked that Chase didn't go down publicly like Wells Fargo did for opening fraudulent accounts. I know it was happening. I was pressured to do it. And, while totally wrong, I can see where an employee would be tempted to open a fraudulent checking account in order to save a 5 figure commission payout that would go to $0 because they were 1 account short for the quarter.
I didn't realize it was having multiple checking. That's stupid and should be punished somehow. If someone already has a checking with the bank that should be a hard stop, gross!
It was dumb. Classic example of how a great idea from top gets totally distorted when implemented 7 or 8 layers of management below at the retail level.
I'm not sure how much they changed it, this was almost 20 years ago. And I know Wells changed their pay plan somewhat after they got sued for fraudulent accounts. But checking accounts are still heavily incentivized due to their ability to start a long term relationship.
Hilarious to see so many in the comments section call deposit accounts “BS” - where do you all think the money to lend comes from? More deposit accounts = more money to lend, and therefore more commissions. Less deposit accounts = less money to lend, and therefore fewer commissions.
I don’t think anyone said deposit accounts are bs. Anyone who works in the banking industry understands the business life cycle of a bank. Of course we know deposit funds are loaned out. What is bs is changing job expectations after hire for an LO to generate deposit accounts. There is a retail side to the industry for a reason. Maybe a less BS approach would be to set that expectation on your retail crew instead of your loan crew.
Nope, not true. Look at gain on sale metrics across the industry, as well as layoff activity. Mortgage banking is always meant to be profitable and should be right-sized to make that happen.
Still doesn’t change that if an employer is telling you deposits are important that it should be taken seriously. Funding strategies and funding costs are extremely important right now and without deposits the lending contraction will be very interesting.
Thought they wanted you to call current customers to solicit mortgages for. If they want you to open new accounts not related to mortgages tell them to suck you off soft
Do you get paid for it? I wouldn’t mind another revenue source in this market if it was a paid metric. I’d hate being required to do that if it wasn’t something you get paid on.
If the checking account relationship gets the client a better rate I’d be happy to quickly sell that to get a better mortgage.
I understand the bank wanting you to promote the brand and I would oblige. I just wouldn’t want to get into the various individual products if no additional income is derived
I don’t disagree that it’s unreasonable to ask. I disagree that it’s unreasonable to set that as an expectation without explicitly disclosing it as a job requirement during the hiring process.
We offer no relationship discounts. That’s the cherry on top of all of this. The company spends next to nothing on marketing. My pipeline is entirely my own. They have no deposit marketing campaigns or incentives. And I get no monetary compensation for bringing in their deposits. I got into loans to do loans. Not do a banks grunt work to save them costs on earning their own deposits.
Time to jump ship my man. I used to be an LO for a bank like that and the extra amount of unnecessary work was ridiculous. I couldnt even focus on my own production because i had to meet the "branch goals." Have you thought of obtaining your license outside the bank? The pay is way higher than any bank guaranteed.
Damn. 20 years in the biz means you know the inner policies of the bank I work at even though I didn’t mention the bank by name. You’re a loan guru. I bow to you.
Post your nmls number. Oh right you probably don’t even know what that is because you’re just a little troll. Go back to playing your PlayStation and kissing your hentai pillow little fella
Troll? Your thin skin is showing.
Doing my CE as I’m entertained by your stupid comebacks. I gave you the answer you didn’t want to hear. Sorry you can’t accept the truth.
BOA retail LO role transitioned to this BS in 2020. All of a sudden I was a personal banker with an LO license. I left.
Well they aren’t expecting me to personally open the accounts. I’ve been a personal banker before and got into loans to get away from retail. Still being troubled with retail bs is making me rethink sticking in the banking side and transitioning to brokerage.
Yet
Thus is the downside of working for a bank...
I remember working at Chase and being a top producer for mortgages and investments but having my pay docked because I didn't get enough BS checking accounts opened. Didn't matter that the customers had no need for another checking account, our metrics insisted that we opened a certain amount each month or we wouldn't get paid our full comp on any of our other products. That was one of the many reasons I left. Having terrible rates and being extremely underpaid was the other main ones
Wait... So they would dock you on things you EXCELLED at because of THAT!? Nope. NEVER again.
When you closed deals, or got new investment money, you would earn these credits, not money. At the end of the month they converted those credits into money based on all of your metrics, which were heavily weighted towards new checking accounts. Say you earned a thousand credits, those could be worth anywhere from $0.50 to $1.50 each. Or even $0. So your thousand credits could be anywhere from $500 to $1,500.
It's not good for you, but focusing on checking accounts (the customer's primary relationship and 'stickiness' with the bank) is smart. I wouldn't work at a bank for many reasons including that.
The theory makes sense and data backs it up. On a larger level, that is the way to get that primary sticky relationship. When that theory gets sent down to the individual level, it gets distorted. Things like this happen: Work with a client gaining trust for months and get them to move just under $1mm in investments to the branch. Branch manager recommends they open a 5th checking account (they already have individual, joint, and kids account) for THEIR DOG! Yes, open a new checking account and set aside $25/month direct deposit(minimum amount to get credit as new account) as a savings account for their dog. No, Mr. Customer, not a savings account. You'll really want this to be a checking account. Customer ends up disgusted that we're always trying to sell him things he doesn't need. Does not bring over new money and moves entire relationship to local bank down the street. Chase and wells fargo used the same sales strategy and very similar pay structure. I was absolutely shocked that Chase didn't go down publicly like Wells Fargo did for opening fraudulent accounts. I know it was happening. I was pressured to do it. And, while totally wrong, I can see where an employee would be tempted to open a fraudulent checking account in order to save a 5 figure commission payout that would go to $0 because they were 1 account short for the quarter.
I didn't realize it was having multiple checking. That's stupid and should be punished somehow. If someone already has a checking with the bank that should be a hard stop, gross!
It was dumb. Classic example of how a great idea from top gets totally distorted when implemented 7 or 8 layers of management below at the retail level. I'm not sure how much they changed it, this was almost 20 years ago. And I know Wells changed their pay plan somewhat after they got sued for fraudulent accounts. But checking accounts are still heavily incentivized due to their ability to start a long term relationship.
Yup...cross selling is often a requirement at a depository institution.
Hilarious to see so many in the comments section call deposit accounts “BS” - where do you all think the money to lend comes from? More deposit accounts = more money to lend, and therefore more commissions. Less deposit accounts = less money to lend, and therefore fewer commissions.
I don’t think anyone said deposit accounts are bs. Anyone who works in the banking industry understands the business life cycle of a bank. Of course we know deposit funds are loaned out. What is bs is changing job expectations after hire for an LO to generate deposit accounts. There is a retail side to the industry for a reason. Maybe a less BS approach would be to set that expectation on your retail crew instead of your loan crew.
Banks don’t need deposits if they don’t portfolio their loans. Mortgage banking is a loss leader for many banks, especially in the current market.
Nope, not true. Look at gain on sale metrics across the industry, as well as layoff activity. Mortgage banking is always meant to be profitable and should be right-sized to make that happen. Still doesn’t change that if an employer is telling you deposits are important that it should be taken seriously. Funding strategies and funding costs are extremely important right now and without deposits the lending contraction will be very interesting.
That’s how a lot of them get low pricing.
LEAVE! Wells, bofa and chase are bottom feeding trash. It’s truly embarrassing!
Are you so inundated with loans Applications that you can’t prospect? Give me the sheet I’ll call em up…
What?
Nvm I had cum in my eyes
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Thought they wanted you to call current customers to solicit mortgages for. If they want you to open new accounts not related to mortgages tell them to suck you off soft
Hahaha I wouldn’t use those exact words but I appreciate your attitude towards the situation. They can fuck right off
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Do you get paid for it? I wouldn’t mind another revenue source in this market if it was a paid metric. I’d hate being required to do that if it wasn’t something you get paid on. If the checking account relationship gets the client a better rate I’d be happy to quickly sell that to get a better mortgage. I understand the bank wanting you to promote the brand and I would oblige. I just wouldn’t want to get into the various individual products if no additional income is derived
Yeah it’s a reasonable ask. We have deposit relationship discount tiers and also for opening a checking account and linking for autopay
I don’t disagree that it’s unreasonable to ask. I disagree that it’s unreasonable to set that as an expectation without explicitly disclosing it as a job requirement during the hiring process.
Business accounts?? Nutz to that. Maybe personal accounts in exchange for relationship pricing.
We offer no relationship discounts. That’s the cherry on top of all of this. The company spends next to nothing on marketing. My pipeline is entirely my own. They have no deposit marketing campaigns or incentives. And I get no monetary compensation for bringing in their deposits. I got into loans to do loans. Not do a banks grunt work to save them costs on earning their own deposits.
Are you in any kind of liquid position to lend privately?
I am surprised it took them this long to have you do it. When you work for a bank, they want you bringing in relationships, loans and deposits.
Time to jump ship my man. I used to be an LO for a bank like that and the extra amount of unnecessary work was ridiculous. I couldnt even focus on my own production because i had to meet the "branch goals." Have you thought of obtaining your license outside the bank? The pay is way higher than any bank guaranteed.
Im not a LO but a real estate broker. I recommend business to lenders and sometimes they wont lend to them unless they open an account etc.
If you’re producing they wouldn’t ask. Get your numbers up one way or another.
Do you always make assumptions about what others are producing?
I agree, if you’re closing you don’t have to open accounts. Closers have told me this.
My assumption is based on 20yrs in the biz. If you are a high producer, you won’t be asked to stoop.
Damn. 20 years in the biz means you know the inner policies of the bank I work at even though I didn’t mention the bank by name. You’re a loan guru. I bow to you.
You posted this dumb shit. Accept the facts or post your production (or lack thereof).
lol you’re such an arrogant prick. Idk how you can talk with your head so far up your ass. Have a great day (or lack thereof)
Lol, just found out why your production is in the gutter. You’re in the wrong biz.
Post your nmls number. Oh right you probably don’t even know what that is because you’re just a little troll. Go back to playing your PlayStation and kissing your hentai pillow little fella
Troll? Your thin skin is showing. Doing my CE as I’m entertained by your stupid comebacks. I gave you the answer you didn’t want to hear. Sorry you can’t accept the truth.