Complaints Handling Worldwide

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Complaints Handling Worldwide

• Senan Murphy, Chief Operating Officer, Ulster
  Bank Group
• INFO Conference, 25th June 2009

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Agenda
Ulster Bank Group who we are
Complaints Handling the opportunity
RBSG Global Complaint Handling
External Interaction
Conclusion
3
Agenda
Ulster Bank Group who we are
Complaints Handling the opportunity
RBSG Global Complaint Handling
External Interaction
Conclusion
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Ulster Bank is part of Royal Bank of Scotland
Group

• Founded in 1727, 280 years of financial services
  experience
• Full service banking insurance proposition
• Operating in over 50 countries 40 well known
  brands
• Over 40 million customers worldwide 25 million
  in UK
• Loans to Customers 875bn
• Primary positions in retail and business markets
  globally

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It has been an exceptionally difficult 12 months

• Significant impact on financial services industry
  RBSG
• Challenge more acute in context of RBSG purchase
  of ABN Amro
• Recapitalisation quickly followed by requirement
  for UK Government support
• HM Treasury now 70 owner of RBSG
• Plan is to return to standalone strength as soon
  as is possible

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Despite recent challenges, customers have stayed
with RBS
UK Retail Extremely Satisfied, 2008
UK Commercial Very Satisfied, 2008
RBS
NatWest
24
53
NatWest
RBS
50
19
Other high street banks
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Ulster Bank is a significant player in the Irish
market

• Full-service retail business bank
• Established 1836
• Market leader in NI No.3 position in RI
• Managed on an all-Ireland basis
• 284 retail outlets 58 business centres 1156
  ATMs
• 1.9m customers
• 5700 employees

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UBG has made significant effort to improve
customer satisfaction
Customer Satisfaction, Retail
3
5
R.I.
N.I
1
2
Source MORI Q1 2009
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We take customer engagement seriously at Ulster
Bank
Customer Engagement, Business NI
SCORE
6.78
6.70
6.49
6.58
Customer Engagement, Business RI
SCORE
6.63
5.68
6.03
6.40
Source PwC December 2008
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What customers think an ideal bank brand would
look like
Supportive
Solution Focused
Openness
Need to EARN a reputation based on these metrics
Responsible
Entrepreneurial
Expertise
Source Behaviour Attitudes, December 2008,
March 2009
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Agenda
Ulster Bank Group who we are
Complaints Handling the opportunity
RBSG Global Complaint Handling
External Interaction
Conclusion
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Tip of the Iceberg?
5 Complain to Head Office or
Senior Executive 30 Complain to
Branch 65 Encounter a problem, but do
not complain Why do some people NOT
complain?
No news is not necessarily good news!
Source TARP cross-industry data
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A Golden Opportunity

• A customer who has a GOOD experience will tell 5
  people
• A customer who has a BAD experience will tell 11
  people

Source TARP
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Good complaint handling never more important

• Financial Provider complaint volume increasing
• Ombudsman complaint volume also increasing
• Downturn in economies/financial markets
• Fall in property values a key issue in Ireland
• Loss of trust amongst customers of financial
  institutions
• Power of the consumer lobby increasing

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Agenda
Ulster Bank Group who we are
Complaints Handling the opportunity
RBSG Global Complaint Handling
External Interaction
Conclusion
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RBS Mission

• To ensure we successfully recover relationships
  with unhappy customers and to learn from our
  mistakes

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RBS principles of effective complaint handling

• Treating Customers Fairly principle is the
  foundation
• Consistency, fairness, quality, speed and
  recovery of trust confidence
• Protection of reputation
• meet/exceed relevant legal, regulatory, voluntary
  code, and alternative dispute resolution provider
  (ADR) requirements, including internationally
  recognised standards relating to complaints
• Use complaints data, including Ombudsman
  findings, to
• identify and correct root causes of complaints
• improve products, processes, systems, services,
  and policies

RBSG has made significant investment in complaint
handling in the past 5 years, as we aim for best
in class
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Treating Customers Fairly enshrines 6
principles (outcomes)

• Consumers can be confident that they are dealing
  with firms where the fair treatment of customers
  is central to the corporate culture
• Products and services marketed and sold are
  designed to meet the needs of identified consumer
  groups and are targeted accordingly
• Consumers are provided with clear information and
  are kept appropriately informed before, during
  and after the point of sale
• Where consumers receive advice, the advice is
  suitable and takes account of their circumstances
• Consumers are provided with products that perform
  as firms have led them to expect, and the
  associated service is of an acceptable standard
  and as they have been led to expect
• Consumers do not face unreasonable post-sale
  barriers imposed by firms to change product,
  switch provider, submit a claim or make a
  complaint

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RBS complaint handling values
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Customer Dedication

• Understand customers needs through knowledge of
  their business and empathetic listening
• Resolve issues to customers' satisfaction fairly,
  honestly and consistently
• Be committed to restoring relationships through
  providing an independent, professional review of
  customer complaints
• Work with our customers to resolve their
  complaints but also to enhance the Groups
  reputation

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Continuous Improvement

• Identify and challenge any process, policy, or
  attitude, which prevents fair and professional
  dealings with our customers
• Constantly seek to improve our products and
  levels of service in response to our customers'
  feedback
• Learn from mistakes and especially Ombudsman
  Findings
• Follow complaints processes and work within legal
  and regulatory guidelines at minimum

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Teamwork

• Work together as one team
• Share information across teams and locations
• Support the different roles and functions
• Share information with our businesses to ensure
  we do best job for our customers
• Bring problems to surface, share solutions and
  best practices
• Recognise when to bring in others' expertise and
  then use it to resolve problems

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Ownership and Empowerment

• Take full responsibility for investigating and
  resolving customer complaints
• Express opinions honestly fairly ensure
  feedback is provided to relevant businesses
• Accountability for behaviour towards customers
  and colleagues
• Ensure we understand and achieve what is expected
  of us in our roles

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Staff Development Support

• Be committed to our own ongoing personal
  development
• Provide regular, honest and constructive feedback
  and respect others' opinions
• Provide practical support to help colleagues
  achieve their objectives
• Recognise and praise achievements and share with
  the rest of the team
• Help colleagues understand the Groups strategic
  goals how they can contribute
• Use performance management systems fairly,
  constructively and consistently
• Ombudsman presentations to key staff

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Operational challenges to good complaint handling

• Gaps in front line empowerment/skills
• Ease with which consumers can complain
• Hours of business
• Inconsistent approaches to root cause analysis
• Slowness to change established processes
• Attitude to terms and conditions
• Too many products can lead to excessive
  complexity
• Balancing cost agenda in current environment

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Agenda
Ulster Bank Group who we are
Complaints Handling the opportunity
RBSG Global Complaint Handling
External Interaction
Conclusion
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Differences between Irish and UK Ombudsman Schemes
Republic of Ireland

• Broader powers on complaint jurisdiction but
  neither consumer champion or advocate
• Greater focus of national media on Ombudsman role
• Accessible to all at personal level
• Transparency via publication of approach to key
  cases
• Process is onerous on all post High Court ruling
  2008
• Both parties can appeal to High Court

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Differences between Irish and UK Ombudsman Schemes
United Kingdom

• Remit covers the broad swath of financial
  services
• Driven by single issues of wider implications -
  OFT charges, PPI, Endowments
• Ease of process means faster Provider/Ombudsman
  delivery
• Consumer and Financial Services Provider helpline
  very useful
• Complainant has resource to Courts with Provider
  given option to request Judicial Review
• Publication of industry data from Autumn 2009

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Co-operation between financial services providers

• Via Irish Bankers Federation /British Bankers
  Association
• Contact at professional role level
• Inter-Bank committees
• Round table discussions with Regulators
  /Government

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Agenda
Ulster Bank Group who we are
Complaints Handling the opportunity
RBSG Global Complaint Handling
External Interaction
Conclusion
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What does the future hold?

• Consumers more reluctant to buy financial
  products
• Financial Providers more risk averse
• Consumer needs in changed economic environment
• Providers need to deliver greater value
  retention critical
• Power of consumer lobby
• Strengthened Regulatory Environment
• Greater focus on customer individuality, special
  needs, protection of the elderly
• Learn more from mistakes - focus on the cost
• Regulators adopting more principles based
  approach
• Publication in UK of complaint data by both FSA
  and Ombudsman

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Summary

• Culture - view complaints positively and an
  opportunity to improve
• Consistent organisational delivery critical to
  success
• Treat customers fairly
• Bring personal touch to processes
• Comfortable with exceptions as with the rules
• Complaints in context of retention/cross selling
  impacts
• Aim for world class standards
• Work closely with Ombudsmen and Regulators
• Happy with approach and role of Ombudsmen in both
  jurisdictions

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Questions?