Majority unhappy with financial services
There may be plenty of room left to improve the quality of service in financial services. Survey data collated by Newspoll and published by the Australian Securities and Investments Commission yesterday shows that 52 per cent of consumers and investors had experienced some dissatisfaction with a financial product or service in the last two years.While a minority grin and bear it, slightly more than half of those with a complaint with their service provider actually make a complaint, according to the Newspoll research.The Newspoll survey showed that 60 per cent of those who made a complaint found it easy to do so; 56 per cent of all complaints were resolved within a week and 81 per cent within a month; that 64 per cent of those who complained were satisfied with the outcome, and 53 per cent who complained were satisfied with their provider's internal dispute resolution process.That data suggests that about 17 per cent of all consumers who have a complaint with a financial services provider and complain to the provider are not satisfied with the outcome or process, a pretty significant rump of irritated customers likely to add to costs as they seek redress.Separate research by Ipsos-Eureka Social Research Institute and also published by ASIC found that internal dispute resolution processes of financial services providers take a long time.Only 14 per cent of consumers and investors who participated in the research reported that the IDR process was completed in less than one month; 31 per cent said the review process took between two and six months while 29 per cent said that no decision was made after the IDR process was completed. By the end of both the review processes (both internal and external) more than half of participants in the research (57 per cent) were no longer doing business with the financial services provider they complained about. ASIC published the Newspoll and Ipsos-Eureka findings yesterday in a consultation paper on reviews of internal and external dispute resolution schemes.Newspoll conducted its research in June 2008 as part of its omnibus research and contacted 1200people. Ipsos-Eureka conducted subjective and qualitative research in January 2008, though ASIC did not say how many people the firm surveyed.