UK financial services firms need to get their act together when it comes to complaints, according to a report by resource and consulting firm Huntswood.
It released its Complaints Outlook 2019, which featured a survey of 5,511 UK-based financial services customers and found 62% were dissatisfied with how grievances were handled.
Only 22% were satisfied with their provider’s response and the same amount felt the firm was genuinely concerned by the complaint.
Some 26% said they felt they were treated fairly throughout the journey, whereas only 29% said they felt the staff showed empathy.
The report also found 84% of customers would be more likely to stay with a company if their complaint was handled effectively.
The top five reasons for raising complaints were:
- 15% – Unfair charges or charges that were higher than expected;
- 14% – Issues with systems;
- 11% – Poor customers service;
- 9% – The product or service didn’t perform as expected; and
- 7% – Bad advice
Taboo
The report said: “For the longest time, complaining has been something of a dirty word, especially in the UK, where cultural norms dictate we should put up with our issues instead of trying to fix them.
“In fact, the FCA has even made this an argument for part of its regulatory strategy – 15 million Britons routinely miss out on remediation or refunds by not making complaints when they have valid reasons to do so.
“Generally, firms do not want to receive complaints if they can help it. Complaints, after all, mean that something has gone wrong during the customer journey, and no company wants to make mistakes.
“But firms can’t simply ignore them and hope the issue goes away.
“Complaints, and how they are dealt with, remain key drivers of any company’s success.”
Dealing with companies
Some 62% of respondents said they had to contact their provider to chase for an update, while 54% said they only expect one update after a grievance is lodged.
Most complainants said that they received a response within 24 hours (41%), with 1-5 days (23%) and longer than five days (8%).
Lastly, nearly a quarter of financial services customers in the UK expect compensation from a complaint.
Build a better sector
Huntswood added: “Perhaps the most important point to draw from the Complaints Outlook 2019 is that a speedy resolution is becoming the expected standard, and that those firms that can’t maintain (if not improve) service quality at the same time will be left behind.
“In the end, ‘complaining’ should not be seen as negative. We all do it. And we should do it more.
“Only by making our voices heard, and by listening to the complaints being made, can we improve the products and services we use daily, and build a better, more stable, more universally beneficial marketplace.”
The report also collected data from 31 firms including Standard Life, Old Mutual Wealth, Barclays, Lloyds Banking Group and Axa.
