The recent fine of $185 million handed down to Wells Fargo, following an investigation by the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency, highlights the importance of choosing your banking partner carefully. The investigation found that, according to the consent order Wells Fargo signed, approximately 5,300 employees of Wells Fargo were involved in a scheme resulting in over 2 million fake accounts that “may not have been authorized” being set up in order to meet quotas and qualify for bonuses. More than $2 million in overdraft and other fees were linked to these fraudulent accounts that customers didn’t request. The investigation also found this widespread behavior dated back to at least 2011.
I’m sure most Wells Fargo employees are good, hardworking people. But, a scam of this magnitude carried out by more than 5,000 employees points to a serious corporate culture issue at Wells Fargo that puts profits and bonuses before customers. Wells Fargo is often described as one of several large banks that are too big to fail. I would argue they are too big to manage!
Montana is blessed to have over 50 community banks serving large and small towns throughout the state. These community banks are founded in and owned by Montanans, often multi-generationally. The leaders of these community banks establish and maintain bank cultures that put customers and their communities first, since they are fully invested in their own communities. Community banks are full of employees who have been proudly involved in supporting their communities and customers for many decades. They are not too large to manage, and their employees know and are dedicated to serving their customers each and every day. Banking is based on trust, and you can trust your local community bankers who you see on the street, at the football field, or in the grocery store on a weekly basis. At the forefront of every community bank’s culture is honesty and the importance of its personal relationships with its customers.
It is unfortunate that Wells Fargo and several other banks with a national or even international reach have become so large they have lost sight of what is in their customers’ best interests. Now it seems they are too big to manage effectively as well. The next time you are in need of banking services, I hope you will consider a local Montana community bank—which you can trust.
James E. Brown, Executive Director
Montana Independent Bankers