Westpac: Gail Kelly Slips in Banana Video PR Disaster

by Jordan Yerman | December 14, 2009 at 11:15 am

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Westpac Bank boss Gail Kelly, ranked above the Queen of England on Forbes' list of influential women, is facing a PR disaster after approving a condescending video sent to customers that purports to explain Westpac's 45-point interest rate hike on mortgages. The twee cartoon, which compares a several-hundred-thousand-dollar mortgage to a banana smoothie, fails to explain why Westpac's rate hike is nearly double that of the Australian Reserve Bank hike. Gail Kelly, who has always been very image-conscious professionally, has stood by the video, even as Canberra fumes and the public scowls in disbelief. Gail Kelly and the Westpac execs were hoping that the other big Australian Banks (Commonwealth Bank, ANZ, and NAB) would follow suit, but they did not do so; they matched or slightly exceeded the Reserve Bank of Australia's 25-point hike, leaving Westpac alone in what amounts to predatory lending.

Westpac customers, and even the Prime Minister, Kevin Rudd, are now picking apart the bank and its image-conscious boss - who was once carried into a St George staff Christmas party dressed as Cleopatra sitting on a throne. And to think things were going so well.

It's not just the massive rate hike, but the way its justified to the public that leaves Gail Kelly with egg on her face. I'm adding the video to this story- see for yourself. If a video could reach out and pat you on the head, this one would do so.

Competition boss Graeme Samuel sheepishly admits he would think twice if asked again about whether Westpac and St George should be allowed to merge.

It gets worse for Ms. Kelly: Westpac is looking at offshoring hundreds of IT jobs after merging with St. George.

The bank has hired consultancy firm KPMG to draw up a plan to send IT jobs oversees in a program that could potentially affect hundreds of workers from its 2000-strong team.