Reducing FOS exposure for a large banking client through efficient complaint management

Background

Our major banking client faced a significant increase in regulated ‘advice’ complaints due to Claims Management Companies (CMC) pushing for the PPI complaints deadline. This resulted in a backlog, with many complaints breaching regulatory guidelines and increasing exposure to FOS referral fees. The project aimed to provide experienced resources, ensure competence, deliver production and quality standards, identify process improvements, and create a buffer to mitigate the operational impact of new staff recruitment and training.

How we helped

Our Relationship Management team, already familiar with the client’s operation and regulatory framework, enabled the client to focus on key deliverables while ensuring compliance. Within a week, we assembled a team of 22 experienced and qualified reviewers, many of whom had supported the same client on previous Davies engagements. We minimised managerial roles to create a versatile, hands-on unit.

Our team’s suggested improvements led to increased efficiency, as each person doubled their case completion rate while meeting required standards. During a three-month engagement, they also tackled the ring-fenced backlog of complaints, allowing the regular team to focus on incoming volumes.

Results

The project team successfully reduced the volume of customers awaiting a response to acceptable levels, despite the increase in complaint volumes. The percentage of cases breaching regulatory timescales for resolution was reduced by 52%, and the number of cases resolved at the point of entry increased. This success is attributed to the improved efficiency gained through our team’s suggestions. The project allowed the client to focus on ‘normal’ incoming volumes while reducing their FOS exposure and maintaining compliance.