Principle # 7 – Mechanisms for

Complaint Resolution

This presentation is made possible

by the Smart Campaign

www.smartcampaign.org

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1. Client protection principles

2. Principle #7 in practice

3. The client perspective

4. Participant feedback

5. Tools for improving practice

6. Conclusion and call to action

Agenda

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1. Appropriate product design and delivery

2. Prevention of over-indebtedness

3. Transparency

4. Responsible pricing

5. Fair and respectful treatment of clients

6. Privacy of client data

7. Mechanisms for complaint resolution

Client Protection Principles

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1. Client protection principles

2. Principle #7 in practice

3. The client perspective

4. Participant feedback

5. Tools for improving practice

6. Conclusion and call to action

Agenda

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Mechanism for Complaints Resolution

The Principle in Practice:

Providers have a mechanism for collecting, responding in a timely manner, and resolving problems for customers. The mechanism is used to resolve individual complaints and improve products/services.

Consider this:Suggestions boxes are not effective for responding to specific problems in a timely way.

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Set a complaints policy

Actively use a mechanism

Train staff

A written policy requires customer complaints to be taken seriously, fully investigated and resolved in a timely manner without bias.

Put in place a mechanism to handle customer complaints, dedicate staff resources to it, and ensure that it is actively used.

Train staff to handle complaints and refer them to the appropriate person for investigation and resolution.

The Principle in Practice

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Inform clients

Monitor the system

Use the information

Inform clients of their right to complain and how to submit a complaint to the appropriate person.

Use internal audit or another monitoring system to check that complaints are resolved satisfactorily.

Use complaints information is to improve products, sales techniques, and other interactions with clients. Use it to correct mistakes that may be harmful to other clients.

The Principle in Practice

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Examples of complaint mechanisms

Email the MacroDreams Customer

Response Department: customers@md.info

Call the MacroDreams Customer Response

Line: 555-555-555

Send an SMS to the MacroDreams

Customer Response Line: 555-555-555

Leave a comment card in the Suggestion Box at your local branch

Visit a Customer Service Desk.

Call for locations: 555-555-555

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Good Practice: Using Multiple Complaints Channels

Suggestion/

Complaint on-site

Branch Teller

Written suggestion / complaint

Branch Manager

Suggestion/

Complaint via

feedback mechanis

m

Complaints Agent

Immediately Up to 14 days

Source: Adapted from Banco Solidario

Good practice: Assess the complexity and urgency of the complaint then use an

appropriate mechanism.

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1. Client protection principles

2. Principle #7 in practice

3. The client perspective

4. Participant feedback

5. Tools for improving practice

6. Conclusion and call to action

Agenda

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How Dissatisfied Clients Affect the Institution

A very satisfied client will talk about his/her experiences with 3-4 people, but a dissatisfied client will tell 8-9 people.

When a client’s complaints are received, answered, and solved, there is a 90% chance that s/he will return to the institution.

90% of dissatisfied clients whose problems are not resolved will never return to do business with the institution again.

Findin

g

s fro

m

the

Field

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No Complaints Completely Satisfied Customers

If your institution does not receive concerns or complaints, be careful:

• Clients could be happy with your products and customer service, or

• Clients might not feel empowered to share their concerns and complaints or

• They might not know how to do so, or

• Clients might not feel like they can complain without this affecting their business relationship with the institution.

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1. Client protection principles

2. Principle #7 in practice

3. The client perspective

4. Participant feedback

5. Tools for improving practice

6. Conclusion and call to action

Agenda

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Feedback from ParticipantsWhat channels does your institution use to receive, respond to, and resolve complaints?

What complaints or suggestions have you received at your institution? How did your institution respond?

Has the complaints management system evolved at your institution since you began working there?

Do clients take the opportunity to give their feedback?

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1. Client protection principles

2. Principle #7 in practice

3. The client perspective

4. Participant feedback

5. Tools for improving practice

6. Conclusion and call to action

Agenda

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Technical Tools Getting Started Questionnaire: Self Assessment for MFIsSmart LendingSmart SavingsTechnical Guide for Investors

Samples and Case Studies Complaints Analysis Spreadsheet from FMMBComplaints Handling Brochure for Clients from OBSComplaints Handling Manual from FONDESURCOComplaints Handling Manual from TamweelcomClient Welcome Kit

Tools available from the Smart Campaign

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1. Client protection principles

2. Principle #7 in practice

3. The client perspective

4. Participant feedback

5. Tools for improving practice

6. Conclusion and call to action

Agenda

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Financial institutions can adopt this principle by having a mechanism for collecting, responding to, and resolving problems for customers.

By adopting this principle, financial institutions can attract and retain clients and build a positive, trustworthy image.

The Smart Campaign offers tools to help providers create/ improve a mechanism for complaint resolution.

Conclusion

Call to Action: What “next steps” can your institution take to institutionalize and/or improve a mechanism for redress of client grievances?

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Thank you!

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Download the Getting Started Questionnaire and conduct a client protection self-assessment.

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