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… the need for a balanced approach (1)
“I advise other companies’ CEOs, don’t fall into the trap where you go, ‘Where’s the growth? Where’s the growth?’ Where’s the growth?’ They feel a tremendous pressure to grow. Well, sometimes you can’t grow. Sometimes you don’t want to grow. In certain businesses, growth means you either take on bad clients, excess risk, or too much leverage.” –
– Jamie Dimon, chairman and CEO of JPMorgan Chase

It’s a few weeks into the new year and I am sure you have zoomed into full swing to meet the new targets set for you this year. During my training sessions, I come across some bank staff who share some apprehensions with me with regards to some stresses on the job. I usually adopt them as my mentees and virtually advise them on how they can approach their issues with professionalism. This article is dedicated to Branch Managers, Relationship Managers, Customer Service Managers, Compliance Managers, Loans Officers, Recovery Officers. One common issue is the targets given to them which stretches them to various levels of emotional strain and burn-out.

Key Benefits of Target Setting in Banking
Targets are essential for driving growth and accountability. They come from strategic decisions, goals as well as meeting regulatory requirements. Many banks hold annual strategy sessions to review their past, present and also set targets to meet their future plans. Here are some good reasons why targets should be set:
Ensures that banks’ activities are aligned with business objectives, sustainability goals, and regulatory requirements.
Banks are regularly regulated by Bank of Ghana to ensure rules and regulations are adhered to. Imagine what will happen when banks give loans without reference to prudential requirements, single obligor limits, and creating non-performing loans, etc.
Banks set targets in order to improve performance as well as for operational efficiency.
Simply put, target setting is a risk management tool. For prudential reasons, banks set targets for best financial deposit mix and asset concentration mix. For example, there is preference for current and savings accounts which offer cheaper funds, rather than the more expensive fixed deposit accounts, with its higher interest.
Banks use target setting to measure accountability. Clear targets make it easier to measure progress and report results to stakeholders.
The banks’ product development team are also given targets to explore new products, services, and digital solutions that meet evolving customer needs.
One of the significant benefits of target setting is that it provides employees with clear direction and measurable goals, boosting morale and productivity. This method creates a culture of achievement and continuous improvement. High performers are therefore adequately rewarded.
In summary, target setting in banking is a powerful tool for driving performance, managing risks, and ensuring accountability. When the risk and targets are properly balanced, it becomes a perfect tool for performance management.
Typical banking targets for Branch managers/Relationship Managers
The under-listed targets are for business growth. See this sample:
Open 200 new accounts per month,
Achieve Ghc10M in loan disbursements per quarter
Reduce Non performing loans to five percent
Increase deposits by 40% year-on-year,
Ensuring 95%+ customer satisfaction,
Have zero regulatory breaches.
This is a very well laid out strategic goal to enhance the business. However there is a need to balance the targets by asking the following questions when targets are being set:
Is it realistic?
Is it in tandem with existing policies?
Are the requisite resources or logistics in place?
Are the staff trained with the required competencies to perform?
Are the processes in place to produce the expected outcomes?
Sources of Pressure
Bankers often face intense pressure from performance targets, which can affect their well-being, decision-making, and the overall health of the banking system.
Shareholders pressure:The pressure actually starts from the shareholders, then to the Board of Directors. These expectations are discussed at strategy sessions with top management, which then filters in quantitative and qualitative terms to heads of departments, line managers, and finally to the first points of contacts with customers. Some of the pressures are positive, especially where previous years have shown signs of non-performance, stagnation, loss-making, which demands the restructuring of systems.
Aggressive Sales Targets: Retail bankers are frequently required to meet quotas for new accounts, loans, credit cards, and insurance products.
Revenue & Profitability Goals: Banks push staff to maximize fee income and interest margins, especially in competitive markets.
Regulatory Scrutiny: After recent bank failures, regulators have tightened oversight, adding compliance burdens alongside sales expectations.
Economic Conditions: Rising interest expenses, overhead costs, and reduced non-interest income have squeezed bank earnings, increasing pressure on staff to deliver results.
Uncertainty & Monetary Policy: Quantitative tightening and volatile economic environments make it harder to achieve stable performance, amplifying stress on employees
Consequences of Target Pressure
HELP! Employee Stress & Burnout: Constantly chasing numbers can lead to long working hours, anxiety, and reduced morale.
Reduction of Customer Relationship management: Staff eventually prioritize transactional banking over relationship banking because they now look at short-term gains over genuine customer needs.
Risk-Taking Behaviour: Pressure to meet loan or investment targets can encourage risky lending or mis-selling of products. Some staff go to the length of churning out unrealistic figures to meet targets.
Compliance Risks: Balancing sales goals with strict regulatory requirements can create conflicts, increasing the chance of errors or breaches.
Several major banking scandals have been directly linked to excessive pressure on staff to meet aggressive sales or performance targets. The most infamous example is Wells Fargo’s cross‑selling scandal, where unrealistic quotas led employees to open millions of unauthorized accounts.
Why do unrealistic Targets Lead to Scandals?
Unrealistic Quotas: Staff may feel forced to cut corners or falsify records.
Misaligned Incentives: Rewarding quantity of sales over quality of service encourages mis‑selling.
Fear of Punishment: Employees worry about losing jobs or bonuses if targets are not met.
Cultural Pressure: A “sales at all costs” culture can override ethical standards and compliance.
Global Scandals Linked to Target Pressure – The Case of Wells Fargo Bank
There was ethical collapse and corporate governance failures. It involved the creation of millions of unauthorized bank accounts and credit cards in customers’ names without their consent, driven by aggressive sales targets and a culture of high-pressure performance. The scandal led to significant reputational damage and financial penalties for the bank. Key lessons include the importance of ethical leadership, the need for transparent governance, and the impact of corporate culture on employee conduct. The case underscores the need for strong ethical standards and internal controls to prevent such scandals in the future.
Wells Fargo Before the Cross-Selling Scandal
Wells Fargo has long had a reputation for sound management. The company used its financial strength to purchase Wachovia during the height of the financial crisis—forming what became the third largest bank in USA by assets—and emerged from the ensuing recession largely unscathed, with operating and stock price performance among the top of its peer group . Fortune magazine praised Wells Fargo for “a history of avoiding the rest of the industry’s dumbest mistakes.” American Banker called Wells Fargo “the big bank least tarnished by the scandals and reputational crises.” In 2013, it named Chairman and CEO John Stumpf “Banker of the Year.” Carrie Tolstedt, who ran the company’s vast retail banking division, was named the “Most Powerful Woman in Banking.” Wells Fargo ranked 7th on Barron’s 2015 list of the “Most Respected Companies.”
Wells Fargo After the Cross-Selling Scandal
In 2013, rumors circulated that Wells Fargo employees in Southern California were engaging in aggressive tactics to meet their daily cross-selling targets. According to the Los Angeles Times, approximately 30 employees were fired for opening new accounts and issuing debit or credit cards without customer knowledge, in some cases by forging signatures. “We found a breakdown in a small number of our team members,” a Wells Fargo spokesman stated. “Our team members do have goals. And sometimes they can be blinded by a goal.” According to another representative, “This is something we take very seriously. When we find lapses, we do something about it, including firing people.”
Some outside observers alleged that the bank’s practice of setting daily sales targets put excessive pressure on employees. Branch managers were assigned quotas for the number and types of products sold. If the branch did not hit its targets, the shortfall was added to the next day’s goals. Branch employees were provided financial incentive to meet cross-sell and customer-service targets, with personal bankers receiving bonuses up to 15 to 20 percent of their salary and tellers receiving up to 3 percent.
Target Setting in Ghanaian Banks
Next week, we shall come nearer home. As you read this, please sit back and watch out for any red flags or writings on the wall. Food for thought.
TO BE CONTINUED
ABOUT THE AUTHOR
Alberta Quarcoopome is a Fellow of the Institute of Bankers, and CEO of ALKAN Business Consult Ltd. She is the Author of Three books: “The 21st Century Bank Teller: A Strategic Partner” and “My Front Desk Experience: A Young Banker’s Story” and “The Modern Branch Manager’s Companion”. She uses her experience and practical case studies, training young bankers in operational risk management, sales, customer service, banking operations and fraud.
CONTACT
Website www.alkanbiz.com
Email:alberta@alkanbiz.com or albique@yahoo.com
Tel: +233-0244333051/+233-0244611343