“Wealth Managers Face Client Exodus Due to Inadequate Complaint Handling
A recent study by Simplify Consulting has uncovered that wealth managers are losing a significant portion of their client base—approximately one-fifth—due to shortcomings in their complaint procedures. A staggering 25% of customers who lodged complaints reported dissatisfaction with the resolution process.
Despite the introduction of the UK’s Consumer Duty last year to address such issues, its implementation seems to have inadvertently escalated the pressure on firms by increasing the volume of complaints received. Clients have experienced delays of up to eight weeks for responses, often only to be informed that investigations are still ongoing.
In the latter half of 2023, financial services firms collectively received 1.87 million complaints, as reported by the Financial Conduct Authority (FCA). Complaints related to investments and pensions have notably surged by 20% and 24% respectively over the past decade.
Furthermore, the study highlights that 31% of complainants felt uninformed throughout the process, while 44% struggled with unclear contact points and procedures. A staggering 75% of respondents expressed frustration over prolonged resolution times.
Kate Monserrate, director and co-founder of Simplify Consulting, emphasized the persistent upward trend in complaints across all FCA-regulated firms over the last decade. She underscored the need for firms to not only expedite and resolve complaints satisfactorily but also to leverage these insights to improve customer service and prevent future issues.
For more insights, visit: [Link to article]”
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By Benjamin
“Wealth Managers Face Client Exodus Due to Inadequate Complaint Handling
A recent study by Simplify Consulting has uncovered that wealth managers are losing a significant portion of their client base—approximately one-fifth—due to shortcomings in their complaint procedures. A staggering 25% of customers who lodged complaints reported dissatisfaction with the resolution process.
Despite the introduction of the UK’s Consumer Duty last year to address such issues, its implementation seems to have inadvertently escalated the pressure on firms by increasing the volume of complaints received. Clients have experienced delays of up to eight weeks for responses, often only to be informed that investigations are still ongoing.
In the latter half of 2023, financial services firms collectively received 1.87 million complaints, as reported by the Financial Conduct Authority (FCA). Complaints related to investments and pensions have notably surged by 20% and 24% respectively over the past decade.
Furthermore, the study highlights that 31% of complainants felt uninformed throughout the process, while 44% struggled with unclear contact points and procedures. A staggering 75% of respondents expressed frustration over prolonged resolution times.
Kate Monserrate, director and co-founder of Simplify Consulting, emphasized the persistent upward trend in complaints across all FCA-regulated firms over the last decade. She underscored the need for firms to not only expedite and resolve complaints satisfactorily but also to leverage these insights to improve customer service and prevent future issues.
For more insights, visit: [Link to article]”
Would you like any adjustments or additions to this rephrased article?