FCA's Data Publication: Customer Complaints Surges

FCA’s Data Publication: Customer Complaints Surges

Time Stamp: October 20, 2023 7:40 AM
Source Node: 2949671

Financial
services firms in the UK have seen an increase in complaints in the first half
of 2023, according to the latest data published by the Financial Conduct
Authority (FCA). The report, released every six months, provides insight s into
the state of the financial services industry’s customer complaints.

In
2023 H1, financial services firms received a total of 1.88 million opened
complaints, representing a 5% increase from the previous reporting period in
2022 H2, where there were 1.80 million complaints. The rise in complaints
highlights the ongoing challenges faced by the sector in addressing customer
concerns effectively.

The
report looks into various product groups, identifying areas that experienced a
surge in complaints. Notably, decumulation and pensions saw a 20% increase,
while investments and insurance/pure protection both reported an 18% rise.

Banking
and credit cards also registered a 3% increase in complaints. However, there
was a positive trend in the home finance product group, which noted a 10%
reduction in opened complaints, falling from 101,333 in 2022 H2 to 91,469 in
2023 H1.

FCA Data

The
report sheds light on a long-standing issue within the industry, as current
accounts continue to be the most complained-about financial product since 2016
H2. The number of complaints related to current accounts increased from 500,371
in 2022 H2 to 509,923 in 2023 H1, marking a 2% rise.

Understanding the FCA’s
Definition of a Complaint

The
FCA’s data publication provides these key findings. It also offers interactive
dashboards containing tables and data visualizations that explore trends
related to complaint numbers, redress payments, the type of firms involved, the
specific financial products cited in the complaints, and the reasons for those
complaints.

The
FCA defines a complaint
as per its Handbook glossary and mandates firms to report complaints from
eligible complainants. These complaints can encompass activities carried out
within the UK from an
establishment maintained by the firm or their appointed representative.

The
data also includes complaints from retail clients,
professional clients, and other eligible counterparties. A complaint is
considered resolved when the complainant indicates acceptance of the firm’s
response, whether in writing or otherwise.

This
comprehensive report offers an essential resource for the financial services
industry, regulators, and consumers, highlighting areas that require attention
and improvement to enhance customer experiences and ensure the fair treatment
of financial
services consumers in the UK.

The
FCA’s biannual publication underscores the importance of monitoring, analyzing,
and addressing complaints effectively to maintain the integrity of the
financial services sector.

Financial
services firms in the UK have seen an increase in complaints in the first half
of 2023, according to the latest data published by the Financial Conduct
Authority (FCA). The report, released every six months, provides insight s into
the state of the financial services industry’s customer complaints.

In
2023 H1, financial services firms received a total of 1.88 million opened
complaints, representing a 5% increase from the previous reporting period in
2022 H2, where there were 1.80 million complaints. The rise in complaints
highlights the ongoing challenges faced by the sector in addressing customer
concerns effectively.

The
report looks into various product groups, identifying areas that experienced a
surge in complaints. Notably, decumulation and pensions saw a 20% increase,
while investments and insurance/pure protection both reported an 18% rise.

Banking
and credit cards also registered a 3% increase in complaints. However, there
was a positive trend in the home finance product group, which noted a 10%
reduction in opened complaints, falling from 101,333 in 2022 H2 to 91,469 in
2023 H1.

FCA Data

The
report sheds light on a long-standing issue within the industry, as current
accounts continue to be the most complained-about financial product since 2016
H2. The number of complaints related to current accounts increased from 500,371
in 2022 H2 to 509,923 in 2023 H1, marking a 2% rise.

Understanding the FCA’s
Definition of a Complaint

The
FCA’s data publication provides these key findings. It also offers interactive
dashboards containing tables and data visualizations that explore trends
related to complaint numbers, redress payments, the type of firms involved, the
specific financial products cited in the complaints, and the reasons for those
complaints.

The
FCA defines a complaint
as per its Handbook glossary and mandates firms to report complaints from
eligible complainants. These complaints can encompass activities carried out
within the UK from an
establishment maintained by the firm or their appointed representative.

The
data also includes complaints from retail clients,
professional clients, and other eligible counterparties. A complaint is
considered resolved when the complainant indicates acceptance of the firm’s
response, whether in writing or otherwise.

This
comprehensive report offers an essential resource for the financial services
industry, regulators, and consumers, highlighting areas that require attention
and improvement to enhance customer experiences and ensure the fair treatment
of financial
services consumers in the UK.

The
FCA’s biannual publication underscores the importance of monitoring, analyzing,
and addressing complaints effectively to maintain the integrity of the
financial services sector.

Time Stamp:

More from Finance Magnates