How do banks cope with our complaints?

March 29, 2016



Since the recession hit, banks have not only been bailed out, but they have also been punished for their failings in everything from inappropriate investment advice to the infamous Payment Protection Insurance scandal – which saw many consumers mis-sold insurance packages that they were ineligible for.

Pic: Images_of_Money

They’ve also been the target misguided public frustration. Banks have been unfairly used as an excuse for civil unrest and criminal behaviour – the London riots in the summer of 2015 were a perfect example of this.
A rioter was asked why he was taking part in destroying a private retail property, he said: “because of the banks.” To most, it’s quite obvious that there is zero correlation between the two, it was just an excuse to misbehave.

Like all businesses banks don’t always get it right,  and as a customer facing institution they will be told about their failings promptly and in abundance when things do go wrong.
According to the BBC, financial institutions were complained to more 12,000 a day from July to December 2015. Many of these complaints are still founded from unresolved PPI claims. The subsequent fines from these complaint given by the FSA are a real signal to all financial institutions that prevention is the best method for tackling any future mass wave of complaints.

The Financial Ombudsman Service has had to bear the brunt of hundreds of thousands of unresolved complaints relating to PPI and ‘unfair’ investment advice. The amount of potential compensation for the latter can be significant so it is important to know that the process of sharing your complaint between your bank and an independent service is as seamless as possible.

The reality is that is that no matter how valiant the banks efforts may be in prevention, complaints trend because banks, like consumers and the rest of retailers, are not perfect but what they can do is try to make the whole process as painless as possible.

Dealing with complaints

They like us, aren’t spending like they used to, and my guess is that it’s document management software  that is making these processes smoother for administrative teams.
‘Cost efficiency’ and ‘adding value’ or just two buzz phrases that have married up since the credit crunch – so it’s a no brainer that the tighter the budgets banks are faced with, the more they tie nicely with business software solutions.
Streamlining these processes means that they should be able to deal with these situations much faster and once again we can all be satisfied customers.

Thankfully trust in the banking industry is returning, and this is, in part, because they take responsibility for their actions and that they recognise the every-day customer, you and I, as a vital part of their ongoing business.


Related posts:

  1. Phone insurance complaints
  2. Home owners told to cut back by banks
  3. Banks continue to report losses: RBS £794million
  4. New FSA rules force financial firms to reveal complaint numbers


Subscribe to the LION newsletter to receive updates.