Banks dispose 0.772mln consumer complaints

SBP’s banking conduct survey 2016

KARACHI: Banks managed to address almost all the consumer complaints received during the past year, the central bank said on Tuesday.

The State Bank of Pakistan (SBP), in its maiden banking conduct survey report, said banks received 0.781 million complaints from consumers and disposed 0.772 million in 2016.

“Empirically, the banks themselves handle and dispose of around 98 percent of the total consumer complaints whereas only two percent are escalated to Banking Mohtasib of Pakistan, SBP, courts, etc,” it added.

“The quantum of complaints being received and handled at banks makes them a crucial arena of redressal for consumers.”

The report was based on stock taking from the 50 banks and development finance institutions through a questionnaire focusing on the regulatory expectations regarding the following key drivers affecting complaint handling at the banks.        

Last year the State Bank of Pakistan  issued consumer grievance handling mechanism (CGHM) to banks. “It was encouraging to observe that around 74 percent of the respondents have revamped their complaint handling policies in 2016 signaling incorporation of the standards issued under consumer grievance handling mechanism,” said the Bank.

Eighty six percent of banks have explicit policy on complaint handling. In 2016, private banks received 80 percent of consumer complaints, followed by Islamic banks (nine percent) and public sector banks (nearly eight percent).      

Seventy eight percent of respondent banks have a full-fledged department for complaint handling.  “It was also promising to note the change in reporting lines from business nodes to non-business/independent units like service quality,” the Bank said. 

Banks are required to put in place a complaint handling policy and delineate detailed procedures to deal with complaints for persistency and accountability. The SBP expects banks to address the possibility of conflict of interest, while adopting relevant structure of complaint handling function. 

“It is expected that banks as per their clientele will develop and enhance complaint lodgment modes,” the SBP said. The survey found that a total of 343 employees/officers exclusively work on complaints.

As per the complaints numbers provided by the banks, a complaint handling officer on an average dispose of at least nine complaints per day along with investigating other complaints, which appear to be on higher side defined in consumer grievance handling mechanism.

It further found that 60 percent of the banks have complaint management system (CMS).  “When asked about the structure and integration of complaint management system, out of the 30 banks that have CMS, 60 percent asserted to have CMS that is integrative and can be used by branches, call centre, higher management, etc,” it said. 

The survey found that most common exclusion from the scope of consumer complaints is human resource issues. Likewise, exclusions of complaints lodged through unregistered numbers suggest a possible inconvenience for the consumers. “Non-inclusion of auto teller machine claims under complaints is also non-conducive to the essence of effective and responsible complaint handling,” the bank said.