Name: Wells Fargo: Tim Sloan’s Plan to Turn the Bank Around
Uploaded: 2017-07-27
Duration: 5 min 5 s
Description: Wells Fargo CEO Tim Sloan took over the company last year after it's fake accounts scandal.

Tim, since you became CEO of Wells Fargo, you've been working to restore confidence with your investors and customers in the aftermath of that fake accounts scandal. How do you turn the page? Well, I don't think it's just turning a page, I think we're looking at chapters. But what we did is, Stepped in as CEO, we got a group of very senior leaders together and put together a plan to address the concerns of all of our stakeholders. You mentioned customers and shareholders and the like, but really focused on all of our stakeholders And we've been executing on that plan. And I think we will turn the page, turn the chapter, turn a new book in Wells Fargo when we execute on that plan of rebuilding trust .>> But you know the big concern here is the. The Wells scandal wasn't about a one- time issue. It was fraudulent sales practices that had been going on for many, many years. So what do you have to do to repair the Wells brand and its reputation? Well the first thing we need to do is fix what was broken. And within our retail bank, we needed to end the incentive plan that drove inappropriate behavior and roll out a new incentive plan. That's first and foremost. That's been done, it's working, we're very proud of the results. And then we're remediating our customers. For example. For our customers, we reached out to 43 million customers in the fourth quarter and what we said was very simple. If you feel like you received and account that you didn't want, come in and see us and we'll make it right. How are things going so far? They're going well. In most of the areas we are well ahead of where I thought we were going to do. You see that in terms of customer growth, you see that in terms of how our team members are feeling about being a part of Wells Fargo. You see that in terms of how our shareholders are feeling about Wells Fargo. What kind of feedback are you getting from your customers? What are you hearing? Our customers experience scores are now back to the highs that we experienced before the crisis. Our customer loyalty scores are on the way to getting there. I'm out with our corporate customers all the time and they love working with their bankers so generally the feedback is positive. Tim, there's a saying that out of crisis comes opportunity. Is it possible that this sales crisis at Wells could turn out to be an opportunity for you? Well I don't ever wanna go through a reputational crisis like we've been through but there's no question that because of the challenges that we've had, it's created an opportunity to reorganize the company. It's created an opportunity to reinforce the speed at which we need to move, not only Just in terms of, we're repairing our reputational damage. But as importantly, about moving the company forward. Being responsive to our customers and introducing new products and services faster. You told investors recently that Wells is prepared to get out of some of the businesses that it's been in. And, as you said, if something doesn't fit We'll move on. Could these moves be a game changer for the bank? I don't know if they're necessarily gonna be a game changer just because of how diversified our business model is. But at the margin, it certainly makes sense to look at. Businesses that why they're well run don't have scale in those businesses, and they're probably better run by another party. I think the change that's occurring at the company is much more in terms of innovation and technology. As opposed to the sale and shedding of businesses. We reorganized our innovation function a couple of years ago, or our innovation business. And it's now all centralized. It's all under one roof. That's paying great dividends. That's where the game changing occurs. Uh- huh. We saw in your latest [ INAUDIBLE ] results that the retail banking activity and lending in loans have been weak. So what more do you need to do to bring in new business Given that some of your customers still are uncomfortable that the ethical issues ar unresolved Sure, well it takes time in terms of the retail business growth. We bottomed out in the fourth quarter. And were seeing slow but steady growth from that bottom. As it relates to loan growth Really the decline in the long growth which we have experienced in the first couple of quarters, comes from how we're managing risk. We decided in the middle of last year, that the [ INAUDIBLE ] landing business had gotten a little bit too risky. So we started to pull back. If we hadn't done that, we would have grown loans This quarter, but it's the right long term decision to make from a risk standpoint. How will you know when the crisis is over and that things are back to normal? It seems like every time there's a story about Wells Fargo today. And there's some good news that's reported. There's always a repeat of the challenges we had last year. And I think when the coverage of our company is about the story of the day as opposed to rehashing history we probably know it's over. [ BLANK_AUDIO ]

Wells Fargo: Tim Sloan’s Plan to Turn the Bank Around

Wells Fargo CEO Tim Sloan took over the company last year after it's fake accounts scandal.