Tim Sloan shares details of progress on customer focus, leadership, culture and innovation
WASHINGTON--(BUSINESS WIRE)--In opening remarks today, Wells Fargo CEO and President Tim Sloan shared
with the U.S. House Committee on Financial Services the many ways that
Wells Fargo has become a better bank through the ongoing transformation
of its operations, leadership and culture. Sloan also updated the
committee on the company’s efforts to compensate customers for past
issues and on how the bank is working to become the most
customer-focused, efficient and innovative Wells Fargo ever.
“Above all, Wells Fargo is committed to making things right for our
customers and earning back the public’s trust,” Sloan said in his
testimony. “Wells Fargo is a better bank than it was three years ago,
and we are working every day to become better still. This is an ongoing
commitment by all 260,000 team members — starting with me — to put our
customers’ needs first; to act with honesty, integrity and
accountability; and to strive to be the best bank in America.”
Sloan outlined how Wells Fargo is making things right with customers who
were harmed, how the company continues to strengthen risk management and
controls, and how Wells Fargo’s culture has improved since he became CEO
in 2016. He also provided updates on new Wells Fargo innovations aimed
at providing customers with additional convenience and simplicity and
the company’s deepening commitment to communities.
Making things right for customers
Sloan told the committee that Wells Fargo is compensating retail bank
customers who were impacted by past retail sales practices issues. To
date, the company has reviewed 165 million accounts going back 15 years,
contacted more than 40 million customers — both individuals and small
businesses — via 246 million communications, and provided tens of
millions of dollars in compensation to customers.
“We are taking responsibility not only for fees customers should not
have been charged, but also for related effects such as impact on credit
scores,” said Sloan. “Our guiding principle has been to err on the side
of our customers, and we are taking an over-inclusive approach in doing
so.”
Enhanced risk management
Sloan said Wells Fargo has centralized companywide control functions
such as risk, finance, human resources, compliance and technology for
better oversight. Within risk, the company has three “lines of defense”
— front-line risk, independent risk management, and audit — to ensure
multiple layers of review and to improve internal oversight. It has also
hired more than 3,000 new risk team members from outside the company
since 2016 with plans to hire more, Sloan said. As a result, Wells Fargo
has better visibility into issues as they emerge, Sloan said, and can
respond to them more quickly.
Strengthening Wells Fargo’s culture
Since 2016, Wells Fargo’s culture has undergone substantial
transformation, Sloan said. For example, the company introduced a
simpler, more focused Vision,
Values & Goals of Wells Fargo booklet to make it easier for team
members and customers to understand what guides Wells Fargo. It also
introduced a clear set of behavioral expectations for team members and
enhanced accountability through a single leadership objective that is
part of every team member’s annual performance plan.
In 2018, Wells Fargo increased minimum base pay in the U.S. to the
current minimum of $15 per hour. The company also granted restricted
stock rights to approximately 250,000 team members and increased the
total number of paid holidays from eight to 12 — two additional national
holidays plus two personal holidays that team members can use for any
reason.
In addition, Wells Fargo enhanced its independent EthicsLine to make it
easier for team members to report concerns and expanded a program that
encourages team members to speak up when they see something that may
need additional review, attention or expertise.
Innovating for customers
Wells Fargo serves one-third of U.S. households, including customers of
every income level, age, race and ethnicity, said Sloan. The company has
rolled out new, innovative products over the past two years to help
customers meet their financial needs more fully, conveniently and
economically. These tools include Overdraft Rewind®, Real-Time Balance
Alerts, Greenhouse® (a personal financial management tool
designed for students and others who are new to banking), and Control
Tower™ (a mobile tool that helps customers easily manage their digital
accounts).
Deepening community impact
Wells Fargo has deepened its already strong commitment to good corporate
citizenship, said Sloan. The company has consistently ranked among the
leading corporate philanthropists in the U.S. For example, since Wells
Fargo began its NeighborhoodLIFT program in 2012, the company has
provided more than $442 million in down-payment grants to more than
20,000 families in almost 70 communities across the U.S.
In 2018, Wells Fargo expanded its philanthropic giving by more than 50
percent, donating more than $444 million to nearly 11,000 nonprofits
nationwide. Beginning in 2019, Wells Fargo is targeting 2 percent of
after-tax profits for corporate philanthropy.
Members of the committee were also provided copies of the company’s
recent Business
Standards Report titled “Learning from the past, Transforming for
the future.” The comprehensive document was developed with feedback
from external stakeholders, including community organizations, and
further details the many changes that have taken place at Wells Fargo
during Sloan’s tenure as CEO.
About Wells Fargo
Founded in 1852 and headquartered in San Francisco, Wells Fargo &
Company (NYSE:WFC) provides banking, investment and mortgage products
and services, as well as consumer and commercial finance, through 7,800
locations, more than 13,000 ATMs, and the internet (wellsfargo.com).
Wells Fargo’s vision is to satisfy customers’ financial needs and help
them succeed financially. With approximately 260,000 team members, Wells
Fargo serves one in three households in the United States. Wells Fargo &
Company was ranked No. 26 on Fortune’s 2018 rankings of America’s
largest corporations. In 2018, Wells Fargo donated $444 million to
nearly 11,000 nonprofits in support of affordable housing, small
business growth, financial education, and sustainability, among other
community needs. For 10 consecutive years, Wells Fargo has held the
honor of No. 1 in workplace giving by United Way Worldwide. Wells Fargo
team members also make a difference by donating more than 2 million
hours of volunteer time in the last year. News, insights and more
information on the company’s corporate responsibility are available at Wells
Fargo Stories.
