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 customers@md.info ❖ 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