Sales vs. Integrity: A False Dichotomy? [Perspective from Banking & Financial Services Industry]

Sales and Integrity often seem to be at crossroads, esp. in the BFSI industry. Why?

The relationship between sales and integrity has long been a subject of both internal and public scrutiny. One hand, the BFSI industry deals with their clients’ financial futures, and simultaneously on the other, it is bound by mandate to increase revenues! Despite the apparent symbiosis, sales objectives and integrity may often find themselves at odds.

Why is this so? And what can professionals and organizations do to bridge this gap? Let's see.

Why the conflict?

1. Ever-mounting Pressure to meet targets:

Corporates are profit-driven, and success is often measured through metrics such as new account openings, loan issuance, or investment product/income sales. The emphasis on numbers alone often creates scenarios where employees are compelled to prioritize closing a sale over ensuring fairness in the sales process!

2. Incentive Structures:

Since payouts and promotions are linked predominantly to sales figures, the incentive to stretch, bend and hide the truth becomes stronger. This leads to products being sold to clients without a genuine assessment of their needs.

3. Short-Term Gain vs. Long-Term Trust:

The temptation for immediate gain often clashes with perseverance required for long-term trust creation. Sometimes, the sales processes are somewhat opaque by design, leading to clients end up making decisions not in their best interests. Rebuilding trust lost due to misaligned practices can be an uphill battle. Most new age corporates fail to realise that: trust is the cornerstone of long-term client relationships.

4. Compliance vs. Sales Ambitions:

Stringent compliance processes are often seen as impediments to achieving sales targets. Audit / Compliance teams along with the sales leadership team must step in to minimise audit/compliance vs. sales’ friction.

The Way Forward: Aligning Sales with Integrity

1. Redefining Success Metrics

Organizations can consider measuring ‘success’ as a combination of sales volume, client satisfaction scores, repeat business, client exits etc. Incentives & promotions can be designed to reward these parameters holistically, and not overly focussing on sales alone.

2. Nurturing Ethical Leadership:

Leaders should model the behaviours they want to see. And prioritise ethics in their actions to set the tone for the entire organization. Sales leadership can further emphasise teams that integrity isn’t just about following the rules; it’s about building lasting relationships based on transparency and trust.

3. Integration of Compliance and Sales:

Instead of treating compliance as a barrier, integrating it into the sales process as a collaborative partner can shift perceptions. This can help ensure that ethical practices become embedded in the culture, rather than viewed as a hurdle to overcome.

4. Training and Awareness:

Comprehensive training programs that emphasize: a) ethical sales practices b) educate employees about the importance of maintaining integrity c) upskill them to sell on the basis of customer-profile and needs - can play a pivotal role.

A FUTURE BUILT ON TRUST

At its core, the banking and financial services industry thrives on trust. When sales & integrity align, the employees feel confident, clients make well-informed decisions, and organizations build reputations that lead to remarkable growth over long term!

How do you think the industry could do better to bridge this gap between sales and integrity?

Would love to hear your insights and comments.