ombudsman services: leaders or followers? …or – to what extent should we shape the world around us? British and Irish Ombudsman Association 12 May 2011 Natalie Ceeney chief executive & chief ombudsman – financial ombudsman service

the role of complaints… “…complaining customers give businesses a key opportunity to uncover problems. Resolving these problems can result in the conversion of these complaining customers into loyal ones who feel bonded to the company and will continue buying its products or services. In other words, it is to the organisation's benefit to think of complaints as gifts...The way a complaint is handled can mean the difference between creating an evangelist for the company or a lifelong enemy.” * *Dr Janelle Barlow - University of California-Berkeley

the role of an ombudsman service…

we hear the complaints… …and so don’t we have the insight?

our role – the financial ombudsman service “settling disputes, without taking sides… ” “…sharing what we see, to help prevent future problems”

so, what challenges do we face in doing this? In 2010/11 – we received over 200,000 cases …and we cover tens of thousands of firms ... but only 4 businesses account for 51% of our work 4 banking groups Lloyds – 48,246 cases Barclays – 17,471 cases RBS – 18,737 cases HSBC – 17,702 cases Other banks & building Societies IFAs Other businesses Insurers & investment providers 7.5% 1.5% 23.5% 16.5% 51%

…and we work across a huge range of products

so, what are we doing to ‘lead’ the debate…? publish data on complaints received by product and by individual business share examples of good & bad data on outcomes of complaints sharing data seminars q&a sessions website ‘ombudsman news’ work with firms to help them improve “horizon scanning” with regulators predict future trends meet regularly with FSA and OFT to dicuss what we see flag individual cases which have wider implications technical briefing notes website technical advice helpdesk work with advice agencies such as the CAB accessible guidance

what impact has this had? higher levels of senior engagement over complaints handling a fall in certain areas of complaints a more contentious positioning of the Financial Ombudsman Service

the regulatory context… we share feedback from what we see sets overall regulatory framework & rules of operation fines firms for poor behaviour an environment which aims to protect customers… resolve individual cases draw together insight and themes

PPI – the example… 1998 – 2005 Increasing media & consumer concern about PPI mis-selling january 2005 september 2005 2006 - 2008 february 2007 banks – sale of PPI over 10 years _________________ BUT complaints still rise, while selling continues…

PPI – the example… may 2009 – FSA bans sale of single premium PPI july 2008 Financial Ombudsman Service asks the FSA for action… may 2009 – FSA bans sale of single premium PPI august 2010 – FSA policy statement october 2010 – Competition Commission confirms ban on point of sale PPI Judicial Review

leading into the future… our future plans publish final ombudsmen decisions work closely with the NEW regulator towards a more proactive redress approach Freedom of Information Act subject to FOI in October 2011 a great opportunity to demonstrate best practice prompting debate visibly promoting action challenging where required without being seen as “consumer champion” customer service raised profile e-Enablement governance leading by example

we live in challenging times…