The union representing bank staff said regulatory change, such as the review of the Financial Advisers Act, was doing little to counteract pressure on the workers to flog debt products, KiwiSaver and insurance.

First Union launched a "Service before Sales" campaign today in Wellington.

It comes two months after the release of the landmark Sedgwick Report in Australia, which recommended 21 changes to help transform banking culture and practice from “sales first” to “service first”.

The report was commissioned by the Australian Bankers’ Association after widespread criticism of the way banks sell their debt products to consumers.

The major Australian banks, which own the big four in New Zealand, have agreed to adopt all of the recommendations.

First Union said ANZ and Westpac in New Zealand had made commitments to the bank workers’ union that they would do the same.

ANZ revealed on Friday that it is changing its remuneration structure. From October, 25% to 30% of frontline staff's bonuses will be derived from how much they sell. Currently this is about 50%.

First Union organiser Tali Williams said bank staff reported feeling stressed by their targets and concerned about being forced to sell products to customers who did not need them or could not afford them.

She said life insurance was a key focus for banks at present.

“They are all reporting first and foremost that they have got to sell life insurance.”

She said new rules, such as the new obligation under the Financial Services Legislation Amendment Bill not to incentivise staff in a way that did not put customers first, did not help.

It created a situation where they had to “tick boxes” before they could sell a product to a certain customer, but the expectation was still there to shift the same number of products overall, she said.

“They have to be seen to do right by the regulations and they are doing that by making sure the right boxes are ticked but then they go back to the manager who says you haven’t sold the five you said this morning you were going to what’s wrong with you.”

She said the union wanted banks to follow others internationally to lessen the target pressure and focus more on service.

Claire Matthews, of Massey University, said banks were profit-making entities and sales were what generated that.

“It is certainly competition for advisers, but I’m not convinced you can describe it as unfair competition.  These people are the customers of the bank, and it is reasonable for the banks to try to provide them with more of the products that the banks have available.  In many cases, these people simply don’t have access to financial advisers.  I don’t think advisers can complain about the competition from banks, until access to financial advisers is more universal.”