Learn about the new changes to complaints and internal dispute resolution procedures for financial institutions as mandated by ASIC, as well as the importance of having effective complaint management processes.
In the 2020-21 financial year, the Australian Financial Complaints Authority (AFCA) received 70,000 complaints from Australians in dispute with financial services. That means financial institutions such as banks, insurance companies, mortgage brokers – the works. Believe it or not, this statistic was down 12% from the previous year.
Keep in mind, these 70,000 complaints were the ones escalated to the regulator. This number does not take into account the exorbitant amount of complaints received directly from the financial services sector – it simply covers those customers who were not able to reach a solution with their financial services providers.
These statistics are a great reminder of how important it is for all businesses to change the way they view complaint handling and investigation.
When a customer complains, it is an opportunity to learn and potentially even grow the amount that they spend with you.
There is no question that among those who complain, most just want to be heard. To have an empathetic ear to assist and understand things from their point of view.
Those businesses that invest in ensuring that their teams have the capacity to effectively manage complaints in this way have an incredible opportunity to gather information to innovate, improve, and earn more sales.
Here are some basic steps to ensure your teams are well prepared and confident to handle and investigate complaints effectively:
- Ensure your complaint handling policies and procedures are up to date.
- Make sure you define what a complaint is and what it isn’t.
- Outline what your expectations are as an organisation to not only respond to but resolve a complaint by a specific time.
- Change your culture to “we welcome complaints.”
- Record your complaints – if complaints become reoccurring, find a way to improve the root cause.
- Train your staff in complaint handling and investigation so that they have the confidence to resolve the complaint and improve the customer’s experience.
If you are a financial service organisation, remember to have a new Internal Dispute Resolution Procedures compliance with RG 271 and also AS / NZS 10002:2014 before 5 Oct 2021. Find out more about the upcoming changes here.