Disgruntled customers are leaving their banks in droves after being let down by inadequate complaints handling processes.
Complaints have been on the rise during the Covid-19 pandemic with 27 per cent of customers raising issues with their bank or the Ombudsman in the past 12 months. Data from software company Nuix found that over a third of customers had a negative experience of the complaints process with a quarter of saying they would not use the same bank in future.
Andy Edler, Head of Corporate at Nuix, said, “banks need improved data analysis and insight to truly understand the root cause of complaints and to identify patterns and behaviours as they emerge. This will help determine the right customer treatment strategies, improve confidence and deliver a better customer experience.”
The news comes as the UK faces rising levels of cyber crime with Richard Wood, CEO of Synectics Solutions, recently warning City A.M. that UK fraud losses amount to £52bn each year.
According to Nuix the vast majority of customers, 69 per cent, are feeling more concerned about financial fraud after the pandemic with over 60 per cent of banking customers targeted by email scams.
Edler said “cyber fraud has become a rising issue for businesses as well as consumers, especially with the move to remote working and the acceleration of digital transformation.” He urged banks to “improve technology to prevent fraud from occurring” and to “utilise the data at their disposal to address the customer feedback loop effectively.”