Warning to banks to ensure top service

IRISH banks were warned last night by Finance Minister Brian Cowen to safeguard the reputation of the Irish financial services industry by ensuring high standards.

“I will never be an apologist for bad service to consumers or for practices that put at risk the reputation not just of individual institutions, but of the Irish financial services industry at large,” the minister said.

Mr Cowen yesterday delivered the inaugural lecture on Leadership in Financial Services hosted by the International Financial Services Institute (IFSI) which is based in the National College of Ireland (NCI).

Speaking about the importance the Government attaches to high standards of competence and conduct, and to education and training, he said: “There are risks that must be considered by institutions and their supervisors, including ‘reputational risk’.

“This is the risk that developments will arise, or practices will be engaged in, which will undermine the standing of an institution in dealing with its customers, who will be less willing to use that institution’s services in the future,” he said.

Mr Cowen quoted a recent PricewaterhouseCoopers study which suggested, internationally, reputational risk is “now regarded as the greatest threat to an organisation’s market value.”

Mr Cowen said the best way to protect against the risk is for institutions to ensure high standards of professional conduct in dealing with clients, at all levels.

“As a new finance minister, though not a new minister, I want you to know that I am happy to champion the cause of Ireland as a centre for financial services.

“I am happy to promote our industry as a provider of services internationally.”