Online training:
Mechanism to resolve client
complaints
Speaker: Hema Bansal
13 February 2018
• Recognize the importance of Complaint Resolution
Mechanism for Financial Service Provider (FSP)
• Understand the standards and indicators of the 7th Client
Protection Principle – Complaint Resolution Mechanism.
• Identify the approaches to address gaps of CPP7.
• Learn best practices and tools of Smart Campaign.
Session Objectives
Principles of Client Protection
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 clients data
7. Mechanisms for complaint resolution
Complaints and suggestions are GIFTs to the
institution. They help the FSP understand client needs
and innovate for improvement.
Philosophy to Consider
Importance of Complaint Resolution
Mechanism
Better client retention
Enhance brand loyalty
Improve product and process based on client need
Strengthen customer service culture
Compliance to regulation
• 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 FSP
If your FSP does not receive concerns
or complaints, be careful:
Surveys indicate clients don’t know how
to complain
Source: Client Voices Research was conducted since 2014 by Smart Campaign and BFA.
It’s not that clients don’t have complaints
“It is so expensive
to complain, then
sometimes it has
no use.” – Woman,
Telavi, Georgia
“If you go to
complain to [the
MFP] office, or
elsewhere, you
won’t get another
loan.”
– Man, Parakou,
Benin
Source: Client Voices Research was conducted since 2014 by Smart Campaign and BFA.
How client satisfaction affects the institution
Very satisfied client will talk about the experience with 3-4 people, but dissatisfied client will tell 8-9 people.
When a client’s complaints are received, answered and solved, there is 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.
Source: https://beyondphilosophy.com/15-statistics-that-should-change-the-business-world-but-havent/
Standards – Client Protection Principles 7
The FI has effective system to receive and resolve
complaints.
The FI informs clients about their rights to complain
and how to submit a complaint.
The FI uses information from complaints to manage
operations and improve product and service quality.
Standards of Care
3 standards
0 compliance
criteria
14 indicators
The provider has an effective system in place
receive and resolve client complaints
✓ Frontline staff are not the only
complaint contact
✓ Far branches and 3rd party
complaints heard
✓ 2+ channels; reflect needs &
preferences of clients
✓ Resolution prioritizes severity
❖ Email [email protected] ❖ Call the 3rd party/Agent
Customer Response❖ Call Customer Response
Line: 555-555-555 or SMS❖ Leave a comment in the
Suggestion Box at your branch
❖ Visit Customer Service Desk
The provider informs clients about their rights to
complain and how to submit a complaint
✓ Clients are informed about channels during product application process
✓ Displays at branches, use agents and flyers at branches/agents
✓ Clients informed when complaints are received and when they are
resolved.
The provider uses information from complaints to
manage operations and improve product and
service quality.
✓ Regular review of Key Performance Indicators
(KPIs)
✓ Internal Control and sample reviews
✓ Intégration to staff appraisals and bonuses
✓ Data analysis used for improvement
✓ Detailed training – process, roles and
escalation matrix
Example of KPIs: # of complaints by product/
branch, amount of time lapsed on average between
receipt and resolution of complaint (TAT – Turn
Around Time)
Assessment of Gaps
Steps for implementation
Gaps Assessment
Prepare ToR and Action Plan
Creation of documents, manuals, policies, training materials etc.
Submission of manuals, documents, setting process, systems and next steps matrix allocating responsibilities
Ensure buy in of CEO/Senior
Management !
Monitor ,
Review the
action plan
regularly and
update the
Management
Assessment and Identification of gaps
• Self Assessment (GSQ) - Smart Campaign
http://smartcampaign.org/tools-a-resources/1108
• SPTF Tool
• Accompanied Assessment with MFI/FSP
• External Assessment Accredited Assessors/SPTF
From output of Smart Assessment Report (GSQ), identify the
standards and indicators that are missing or are the biggest gaps ?
Categorize the gaps under category – Policy, Process, Training etc.
Assessment and Identification of gaps
System in place
to effectively
receive and
resolve
complaints.
Strengths:
ABC has a defined process for checking the suggestion boxes and
responding to clients (see process above), and most employees adhere to
the process. The process is documented in the employee handbook.
Areas of improvement:
ABC only receives a few client suggestions/questions/complaints each month,
through the suggestion boxes, demonstrating that clients do not actively use the
mechanism. ABC may consider adding a second mechanism that allows greater
responsiveness to clients, or replacing the current system altogether.
Assessing Gap
Prepare ToR and Action Plan • Draft the terms of reference (2 – 3
pages) for a technical assistance
assignment addressing any one or
several of the gaps.
• You can use any format but please
include:
• Proposed activity,
• Objectives
• Methodology
• Performance indicators
• Timeline with deliverables,
• Reference to Smart Tools appropriate to
the tasks.
Review and Monitor Action Plan
• Regularly review the activities and timeline with deliverables.
• Regularly update the management
of FI on milestones achieved, resources needed and challenges.
• Refresh, Revise, Reallocate the
roles/responsibilities and Submit the Action Plan.
Present to Management and Submit
Final Report
• Make presentation to the management on tasks completed
and next steps for
institutionalization of the
process/policy added.
• Gather feedback and include in
the next steps of the responsibility
matrix.
• Submit Final Report.
TA provider what would you recommend?
Discussion with Executive Management • Assess what other system of feedback exists,
if that can be formalized? New system to be introduced like a toll free number ?
• What would be required to formalize a new system for example and institution decides to institute a toll free number.
• How to build an escalation matrix
• Executive Management takes a decision
Planning Process and allocating responsibilities to people • Appoint a point person /small team for
developing the new complaint resolution mechanism like setting a “Hot Line” number.
• Refer to the “Operational Manual Tool’ to decide responsibilities for each department
Documentation
• Developing Polices
• Process Manuals
• Updating Training Documentation
• Reporting format
• Internal Audit Check List
• Other?
Implementation Support
• Review the Work Plan regularly
• Update the management regularly
• Share the hits and misses
• Gather feedback in the process
• Other?
Tools and Resources
• Develop policy for setting hot line number
• Establish mechanisms for resolving client complaints an organizational position in charge of overseeing complaints resolution
• A process for providing responses directly to clients who complain, within one month of complaint submission
CC IT LT
• Assist in development and dissemination of a training manual
• Train employees on how to: Use the complaints
• Talk to clients about their right to ask questions and make complaints.
• Direct clients to use the institution’s complaints mechanism.
• Handle the most common complaints and when to refer complaints to the employees in charge of complaints.
CCHR
https://www.smartcampaign.org/tools-a-resources/796-smart-operations
• Check that employees dedicated to the complaints mechanism follow institutional procedures
• Frontline employees understand how to explain the mechanism to clients.
• Frontline employees accurately and regularly report complaints information to the concerned department or the appropriate managers.
• Clients receive timely response to their issues, within a month of complaint submission.
RM CC, PR, PM
Smart Operations Tool
Owner is the person who will be responsible for resolution. CRO is Complaint Resolution Officer
and CCR is Customer Care Representative. CRM is Customer Relationship Manager.
Ujjivan Complaint Resolution Framework
– Process
Log the complaint in V Tiger
Tool
Provide reference number to customer
Send complaint details to
“Owner” and keep CRO in
loop
Log resolution details in V - Tiger
Tool
Convey resolution details to customer
CCR
Branches
Non - CCR
Branches
Fill Excel Complaint
Tracker and send to
Regional Helpdesk
Helpdesk fill
complaint in Seek Tool
and provides
CRM with reference number
Helpdesk send
complaint details
to “Owner” and keep CRO in
loop
Helpdesk will log
resolution details in Seek Tool
Helpdesk will convey resolution details to customer
Client ComplaintTurn Around Time: 3 – 5 working days
Categorization of Complaint @ Ujjivan
Type of Complaint Level Example TAT (days)
Integrity Issue, Revenue Loss I Fraud Cases 10
Disciplinary Issue II Staff misbehavior 3
Service delays/lapses IIIDisbursement/loan application/centre meeting delays
1-5
Others IVCo-ordination in group/centre meetings etc
3 - 5
Level 1 & 2: CCR/CRM & Regional Helpdesk close in 3 working daysLevel 3: Complaint Resolution Officer close in 5 working daysAny further delays, escalated to the COO of the Region
All levels of complaints are treated equally with same sense of
urgency & speed!
What challenges to expect and how to deal
with FSPs during Technical Assistance
Project ?
• Delays in implementation
• Lack of funding
• Changing priorities
• Small institutions not
dynamic
• Ensure continuous
commitment from CEO
• Create solutions tailored to
operations.
• Ensure to fix easy gaps first
(Policy)
• Know who you need to work
with
• Check on resources available.
• Keep the influencers
involved.
Golden Five Rules
• At least two channels for complaint resolution
• Collect, analyze, notify, and respond on time!
• Management does regular review, incentives, and analysis
to improve product/service quality.
• Internal control - verify policies and procedures for
complaints handling. Field checks on sample basis.
• Staff and third parties are trained and clients are informed
Thank you!
Questions & Answers
TA Provider Webinar Series
Past topics include: • Improving pricing transparency
• Preventing overindebtedness
Find the presentations and recordings here:
https://sptf.info/online-trainings/ta-
provider-series
The Responsible Microfinance Facility (RMF) Advancing SPM practices in Africa and the Middle East http://sptf.info/resources/responsible-microfinance-facility
Next deadline for applications: 21 March 2018
The RMF offers the following trainings: • Responsible Inclusive Finance Training • Smart Assessor Training• SPI4 Auditor Training • Training TA providers on client protection • Training TA providers on other elements of SPM
The RMF provides co-financing to financial institutions for the following activities: • Accompanied SPI4 assessment plus additional support• Client protection assessment • Upgrade project • Specialized training on an aspect of SPM • Smart certification and/or social rating
Replicating the RMF in other regions:
Responsible Inclusive Finance Facility for
Central America and the Caribbean (RIFF-CAC)
https://sptf.info/resources/fondo-para-las-
finanzas-responsables-e-inclusivas-ffri
Responsible Inclusive Finance Facility for
Southeast Asia (RIFF-SEA):
https://sptf.info/resources/riff-sea