Financial services firms failing to handle complaints adequately

The research revealed a widening perception gap between businesses and customers – 60% of firms believe that their customers are satisfied with the way their complaints are handled, but only 22% of customers actually report being satisfied.

71% of customers said they are currently dissatisfied with the empathy of the staff member they interacted with and 70% are dissatisfied with the knowledge of the staff member.

Resolution times also remain an issue, with 43% of firms believing they are resolving complaints at the first point of contact, yet only 20% of customers claiming that their complaint was resolved immediately.

Despite 62% admitting that their employees do not complete professional complaint handling training programmes or qualifications, 81% of the firms interviewed believe that their staff are appropriately equipped and empowered to deal with customers in vulnerable circumstances.

84% of customers said they would change provider as a result of a poor complaints experience.

Paul Scott, chief commercial officer at Huntswood, said: “Firms are increasingly recognising the value that can be derived from the complaints journey. However, despite this, our research shows that there are discrepancies between how financial services companies believe they are handling complaints and the actual reality for customers. Complaints are an unavoidable part of business, so it’s critical that they are handled well and that customers feel valued throughout.

“Firms should therefore be looking to create an effective complaints handling operation, underpinned by a robust strategy which focuses on providing the best possible outcomes for customers. Doing so can deliver enormous benefits, such as deeper relationships with existing customers and an increase in new relationships from customer advocacy.”