It’s the putting right that counts
OPINION: As the Banking Ombudsman Scheme celebrates its 25th anniversary, the adage comes to mind: the more things change, the more they stay the same.
Banking has changed enormously in recent years – whether in technological innovations, consumer expectations or the regulatory landscape.
Apps have replaced cheques, banks are effectively open round the clock, and ‘‘robo-advice’’ has appeared.
Our population as a whole is ageing. Younger New Zealanders, the Snapchat generation, are perhaps not as trusting of large institutions, whether private sector or governmental.
Through all of this, the Banking Ombudsman Scheme has been a credible and constant presence, helping customers to sort out problems with banks.
The scheme was visionary back in 1992 and remains a vital player in the sector today. Its vision, to make banking better for New Zealanders, is as relevant as it ever was.
There were rocky moments in those early days. At least two banks threatened to withdraw their membership in response to adverse decisions. This is a far cry from banks’ supportive attitude today.
Banks now recognise that an independent ombudsman service builds trust and confidence in the sector. Complaints are even seen in a positive light: as a valuable source of customer insight.
We’ve been busy over the years, helping more than 78,000 people and arranging payment of almost $40 million in compensation.
Remember passbook accounts? In the pre-internet days of the early 1990s, a lot of the disputes we dealt with were about missing passbooks and cheques.
As cheque usage has dramatically declined, disputes with banks are now more likely to be about online payment issues.
Prevention has become our mantra in recent times. We give customers advice they can use, on subjects as diverse as switching banks, responsible lending and the tell-tale signs of phishing and other scams.
This approach has paid off, with disputes on a fairly steep decline, although the number of inquiries remains strong. The lessons from casework are fed into our website, social media and education activities. The net result is that bank practices and customer behaviour alike have changed.
This free service has been, and remains, a trusted part of New Zealand’s consumer and banking landscape for 25 years. Whatever the next 25 years may bring, it is still the putting right that counts.
That’s an achievement worth celebrating.
Nicola Sladden has been the Banking Ombudsman since 2015.