#16 Complaints

In this episode of 5 Minutes with the FMA, host Heidi Norman is joined by Executive Director Licensing and Conduct Supervision, Clare Bolingford to discuss why complaints are a focus for the FMA the We want financial service providers to ensure their complaints processes are accessible, fair, and effective, not only by making it easy to complain, but also by understanding and addressing the reasons some consumers don’t. We see complaints as moments of truth, revealing not just what went wrong, but how well firms respond when it matters most.

Transcript

Heidi:

Kia ora and welcome to 5 Minutes with the FMA, a podcast by New Zealand's Financial Markets Authority. The FMA has just released a new piece of research called Why Don’t Consumers Complain? One of the key findings is that only one in three consumers feel comfortable that they know how to make a complaint about their financial services provider.

Joining me today to talk about all things complaints is Executive Director of Licensing and Conduct Supervision, Clare Billingford. Welcome.

Clare:

Thanks, Heidi.

Heidi:

So Clare, tell me—why is it important that consumers are able to make a complaint about their financial services provider?

Clare:

There are a couple of reasons. First, consumers need to have trust and confidence in their providers. They need to feel they’ll be treated fairly if a problem arises. Being open to receiving complaints and helping customers through the process is really important to building that trust and confidence.

Heidi:

A key finding of the paper is that less than one-third of people feel confident about making a complaint. What does that suggest?

Clare:

As you said, Heidi, the challenge is that people don’t always trust they’ll be listened to. They may not see the point in putting effort into making a complaint. The process can seem difficult or complicated. From our perspective, it’s helpful if providers make the process as streamlined as possible. Complaints can provide valuable insights to improve services and ensure great products are offered in the market.

Heidi:

What else did the research show?

Clare:

It showed that 57% of people who have complained feel satisfied with the resolution. That tells us some companies are doing this well. We want to highlight good practice and help other firms understand how they can improve and welcome complaints from customers.

Heidi:

Why is the FMA interested and involved in complaints?

Clare:

We want to ensure customers feel treated fairly through the process. If something goes wrong, it’s important they know how to raise issues and that there are multiple ways to do so. Complaints can be moments of truth for companies—helping them identify whether an issue is isolated or systemic. We want firms to embrace complaints to uncover any underlying issues in their products or services.

Heidi:

I understand the FMA has just published an information sheet for industry about complaints. What does this mean? What are we asking firms to do?

Clare:

We’re asking firms to ensure the information they provide about how to make a complaint is easily accessible and clearly explained. That includes outlining timelines, when customers can expect a response, and signposting other help available—like dispute resolution schemes if there’s a disagreement between the customer and provider.

Heidi:

What will the FMA be looking for?

Clare:

We’ll be looking for clear signposting—on websites or in branches—so people know how to complain. We’ll monitor how firms run their complaints processes and what outcomes they deliver for customers. We want to highlight good practice and identify areas for improvement.

Heidi:

Thank you so much for your time today, Clare—much appreciated.

If you’d like more information on anything you’ve heard today, to read the research or view the info sheet, check out our website at https://www.fma.govt.nz. See you next time.