1. 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

2. 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

3. the role of an ombudsman service…

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

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

6. 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%

7. …and we work across a huge range of products

8. 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

9. 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

10. 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

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

12. 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

13. 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

14. we live in challenging times…