Service still sucks... but at least some firms are trying
CUSTOMER service standards across swathes of the financial services industry remain as unacceptable today as they did five years ago. This is despite the regular naming and shaming of serial offenders by the likes of the Financial Conduct Authority (the City’s regulator) and the Financial Ombudsman Service. Even the occasional company fine has not improved matters.
It will not surprise you, therefore, to learn that woeful service still dominates our mailbag, cutting across all spheres of the personal finance world – be it utility providers, banks or insurance giants.
You know the score. Calls go unanswered or are diverted to an automated answering service which invariably leave you in a conversation-less cul de sac.
Minor problems are not sorted out despite promises to the contrary. These then escalate into bigger problems, increasing frustration and eventually the involvement of the Ombudsman to sort out matters.
What is so depressing is that many of the companies with continued customer service issues are iconic financial brands.
For example, Moneywise magazine has just completed its annual audit of customer service standards – embracing the views of some 50,000 customers.
Bottom of the pile is Stateowned Royal Bank of Scotland, vilified by many for making them feel like a commodity rather than a valued customer. Not much better are credit card provider Vanquis, Barclays and Lloyds Banking Group offshoots Bank of Scotland and MBNA.
What is most damning is that it is not the first time Moneywise has awarded Royal Bank of Scotland the proverbial wooden spoon. In the past six years, it has been voted the worst of the worst five times. Hardly an advert for the magic of State involvement and not a particularly great endorsement of the bank’s management under the stewardship of Ross McEwan. Maybe the banking supertanker will turn for the better at some stage, but not in my lifetime that’s for sure.
Which companies are trying their hardest to deliver stellar service? Certainly, Nationwide Building Society under the new direction of Joe Garner is putting customer service at the heart of its business.
I met with Mr Garner last week for a quick coffee – he bought in light of the fact that he was paid nearly £3.4million last year for running the country’s largest building society. He is intent on ensuring the society delivers ‘legendary service’ to its 15 million customers and building a business that is considered a national treasure alongside the likes of the BBC and English Heritage (good luck).
Quality of customer service is a key ingredient in determining the bonuses of all staff (not just board members) at Nationwide – and Mr Garner is determined to raise the bar. So instead of just measuring its customer service standards against the traditional big banks – hardly a difficult exercise – it is now comparing
itself against the challenger banks (the likes of TSB). In time, it wants to benchmark its service performance against the Amazons and John Lewises of this world.
All good news, as is the fact that the society is about to extend its ‘recommend a member’ scheme. This currently pays £100 to a bank account customer who persuades a friend to take out an account. The new member also gets £100. The cash offer – worth a maximum £500 a year – is now being extended to the society’s savers who introduce new bank account customers.
Elsewhere, Fairer Finance has just launched a new set of ratings designed to point personal finance customers in the direction of best value product providers. First products to get the Fairer Finance once over are motor, home and travel insurance. More details at fairerfinance.com.