UK banks are under-performing customer complaints handling, despite their growing belief that customers are satisfied with their performance.

Moreover, the position is getting worse.  There is a widening perception gap between businesses and customers. This is the key takeaway from new research by regulatory and complaints handling consultancy Huntswood.

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The report entitled Complaints Outlook 2019 builds on Huntswood’s 2016 report. Specifically, it aims to provide a comprehensive picture of customer complaints handling performance across the UK.

It combines research from financial services and utilities firms with survey responses from over 5,500 consumers. The nationally representative survey was carried out by Huntswood’s research partners, YouGov.

UK banks’ customer complaints handling key findings:

  • 60% of financial services firms believe their customers are satisfied with their complaints handling. By contrast, only 22% of customers actually report that they are satisfied;
  • 43% of firms believe they are resolving complaints at the first point of contact. On the other hand, only 20% of customers claim that their complaint was resolved immediately, and
  • 84% of customers say that they would change financial services provider as a result of a poor complaints experience.

Since the release of the 2016 report, the complaints landscape has evolved as firms have taken positive steps forward.  Regulatory standards are now viewed as the minimum when it comes to meeting customer expectations.

When asked 71% of customers say they are currently dissatisfied with the empathy of the staff member they interacted with. Some 70% are dissatisfied with the knowledge of the staff member they interacted with. This demonstrates a real need for firms to engage with customers on an emotional level, beyond regulatory minimums

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Resolution times also remain an issue. 43% of firms believe they are resolving complaints at the first point of contact. But only 20% of customers claim that their complaint was resolved immediately.

Paul Scott, Chief Commercial Officer, Huntswood, says: “Firms are increasingly recognising value that can be derived from the complaints journey.  However, despite this, there are discrepancies between how financial services companies believe they are handling complaints and reality for customers.

“Complaints are an unavoidable part of business, so it’s critical they are handled well and that customers feel valued throughout.”

The full report from Huntswood is available via this link.