UK finance businesses face major commercial & resources challenges as millions of PPI customers commence claims process
UK, May 26, 2011 — The financial burden faced by the banks, independent credit card companies and insurance brokers that mis-sold PPI is much publicised. The administrative challenge and financial cost is yet to be calculated.
Getting the process right from the start is vital. Huge volumes need to be handled quickly and at as low a cost as possible. The greater the administrative cost on top of compensation, the longer it will be for banks to recover.
There are three steps for these organisations to follow:
- Understand the customer population
- Segment customers into open and closed loans, and establish which are eligible for compensation
- Determine the correct communication for each group and pro-actively contact them
At the same time, the complaints teams will be handling unprecedented incoming complaints traffic from customers driven by media coverage. Larger banks and brokers have customer complaints resources, but not set-up to handle this volume. Small brokers are faced with workloads that could put them out of business.
There are several approaches that can be taken including the setting-up of a dedicated in-house team; outsourcing to a specialist complaints management agency or possibly a mix of the two.
Whatever the route, the process must be highly visible to the banks management team. It must be able to handle huge volumes; have the flexibility to be set-up in multiple locations (internationally as well if needed); ensure uniform complain management and it must enable root cause analysis.
Whilst financial organisations must address their past mistakes, there are processes that can be set-up to do this effectively and if followed, will help to pro-actively rebuild customer confidence and on-going customer relationship management. Automatic root cause analysis, which effectively captures and categorises all enquiries, will ensure there is never a mis-selling scandal of this proportion again.
“Proactive communication is the best way to manage a customer issue. Acknowledge, address, control, understand the root cause, and resolve - CDC Software fully supports this new approach to customer service.”
According to Paul Elswood, customer complaints management expert & managing director CDC Software UK, Ireland & EMEA
If you would like to speak with Paul Elswood of CDC Software I am happy to arrange this up.
Alternatively, Paul is able to provide a more detailed document on the issues facing businesses managing PPI claims.
About CDC Software
CDC Software (NASDAQ: CDCS), The Customer-Driven Company™, is a hybrid enterprise software provider of on-premise and cloud deployments. Leveraging a service-oriented architecture (SOA), CDC Software offers multiple delivery options for their solutions including on-premise, hosted, cloud-based Software as a Service (SaaS) or blended-hybrid deployment offerings. CDC Software’s solutions include enterprise resource planning (ERP), manufacturing operations management, enterprise manufacturing intelligence, supply chain management (demand management, order management and warehouse and transportation management), global trade management, e-Commerce, human capital management, customer relationship management (CRM), complaint management and aged care solutions.
CDC Software’s recent acquisitions are part of its “acquire, integrate, innovate and grow” strategy. Fueling the success of this strategy is the company’s global scalable business and technology infrastructure featuring multiple complementary applications and services, domain expertise in vertical markets, cost effective product engineering centers in India and China, a highly collaborative and fast product development process utilizing Agile methodologies, and a worldwide network of direct sales and channel operations. This strategy has helped CDC Software deliver innovative and industry-specific solutions to 10,000 customers worldwide within the manufacturing, distribution, transportation, retail, government, real estate, financial services, health care, and not-for-profit industries. For more information, please visit www.cdcsoftware.com.
For More Information
Caroline Howlett / Sophie Bailey
Strategic Public Relations
Tel: 01494 434434