Client protection principles Principle #7 in practice The client perspective

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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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:Suggestion boxes are not effective for responding to specific problems in a timely way.

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Clients know how to submit complaints

Train staff

Inform clients

Effective system

Inform clients about: their right to complain, and how to submit a complaint to the appropriate person.

Train staff on how the complaints mechanism works, the loan officer’s role in the process and how to appropriately manage complaints until they are completely resolved.Create a policy on how to handle complaints, including how to inform clients about the complaint mechanism.

Put in place an effective, appropriate system to resolve complaints in a timely way.

The Principle in Practice

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Staff Assigned

Clear Reporting

Actively Used by Clients

Timely Responses

Assigned someone (at least part-time) to handle complaints and refer them to the appropriate person for resolution.

Establish a clear reporting system in place to ensure that complaints from branches/POS reach complaints handling staff.Ensure the complaints mechanism is actively used by clients.

Give clients a timely response to their issues, within a month of complaint submission.


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Audit verification

Correct mistakes

Incorporate feedback

The FI's internal audit or other monitoring systems check that complaints are resolved satisfactorily.

Use complaints information to correct mistakes, omissions and activities that may be harmful to the client.

Use complaints information to improve the organization's operations/products/ communications.


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Examples of complaint mechanisms

Email the MacroDreams Customer

Response Department: [email protected]

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

mailto:[email protected]

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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

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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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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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Agenda

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Technical Tools

Getting Started Questionnaire: Self Assessment for MFIs and Guide on Smart AssessmentsSmart OperationsEssential Documents for New Clients (see Complaints Information Handout)

Samples and Case Studies

Smart Note: Responding to Complaints at TameerComplaints Handling Brochure for Clients from OBSComplaints Handling Manual from FONDESURCOComplaints-Analysis Spreadsheet from FdMComplaints Handling Manual from Tamweelcom

Tools available from the Smart Campaign

http://smartcampaign.org/tools-a-resources/41















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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!

Endorse the Smart Campaign. Visit www.smartcampaign.org

Sign up to receive news and information.

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

What’s next?

Email us! [email protected]

http://smartcampaign.org/tools-a-resources/2/41

Client protection principles Principle #7 in practice The client perspective

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