Trust Works #1: The Remarkable Story of ABN AMRO Retail Division's Transformation

Think about the last time you visited a bank branch. Did it feel like a place of innovation and trust? Probably not. Bank branches are usually seen as traditional, rigid places where every decision needs three approvals and a rubber stamp. But the retail banking division of ABN AMRO decided to flip this story on its head.

Breaking the Banking Mold

In July 2018, ABN AMRO's retail division in the Netherlands took a brave step. With over 3,500 retail banking employees watching, they announced something radical: "We're going to trust you to make decisions."

No, really. They meant it.

They stripped away layers of bureaucracy in their retail operations and did something most bank divisions would consider unthinkable:

• They cut their performance metrics from 35 to just 7 simple ones everyone could understand
• They created 350 small teams of 10 or fewer people
• They reduced middle management by 90% (yes, you read that right - from 275 to just 25 managers)
• They turned their remaining managers into coaches instead of bosses

What Happens When You Trust Your People?

Here's a story that captures it all. When the retail division told their branches they could set their own working hours, their Managing Director of Consumer Clients, Klaas Ariaans, was on the fence. He explains: "I was scared they would close the branch for half the week."

Want to know what actually happened?

Many branches decided to stay open longer to better serve their customers. When given trust and freedom, people chose to do more, not less.

Trust in Action: The 500 Euro Revolution

They didn't stop there. Every retail banking employee got the power to solve customer complaints up to 500 euros on the spot. No asking permission. No filing forms in triplicate.

Did some people abuse this freedom? Not really. Instead:

• Customer problems got solved faster
• Bad processes got fixed quicker
• Employees felt empowered
• Customers left happier

The Magic Formula

Their approach was beautifully simple:

• Trust beats control
• Responsibility beats structure
• Teams decide how to do their work
• Leaders set the vision and let people run with it

Or as Klaas puts it: "The idea was: never put on the breaks beforehand, only evaluate afterwards".

Did It Actually Work?

The numbers from the retail division tell a powerful story:

• Customer happiness (NPS) shot up by 57%
• Half as many people quit their jobs
• And the best part? Everyone in the retail division says "we never want to go back"

The Secret Ingredient

Klaas Ariaans, Managing Director of Consumer Clients, puts it perfectly: "It starts with a rock-solid belief that if you give employees trust and space, they're going to do the right things for our customers. Our employees are the ones talking to customers every day. Our job as leaders is to create an environment where they can do their best work."

What This Means for All of Us

This isn't just a story about a bank division. It's about what happens when leaders trust their people. When they stop micromanaging and start enabling. When they focus on the "why" and let teams figure out the "how."

The retail division of ABN AMRO showed us that even in the most traditional banking environments, giving people trust and autonomy works. Not just a little bit, but dramatically. They proved that when you believe in people, people will exceed your highest expectations.

Maybe it's time more organisations asked themselves: "What could happen if we truly trusted our people?"

Because as ABN AMRO's retail division discovered, the answer might be better than anything they could have imagined.