Callcredit Whitepaper takes a positive look at PPI claims management
Banks that adopt a proactive approach can gain significant commercial advantages
As the Financial Ombudsman Service reports a significant rise in the number of PPI complaints, Callcredit Information Group today publishes a thought-provoking whitepaper outlining how banks who handle cases in a positive and proactive way can reap the commercial benefits.
The whitepaper, 'PPI - Reaping Opportunities from the Costs,' is written by Juliet Coukham, director of retail lending strategy at Callcredit. In it, she explores how the PPI mis-selling judgement can be turned into a positive opportunity for banks to strengthen their relationships with customers - but only if they handle claims correctly.
Coukham recommends that banks should take a holistic view of each customer, examining the accounts and products an individual holds across different brands. This information is needed for banks to effectively meet their FSA obligations to proactively identify and trace potential claimants; and it can additionally be used as part of a strategic compensation policy, where banks can discuss with customers appropriate investment or offsetting opportunities for compensation payments, in order to reinvest monies in a positive way.
The whitepaper also explores the operational and financial challenges facing banks as they deal with large volumes of claims.
Juliet Coukham said: "There is no doubt that the PPI mis-selling judgement continues to have a substantial impact on banks. Not only are they experiencing increased operational costs as a result of compensation claims, they have also suffered damage to their reputations. However, we firmly believe that if banks embrace their responsibilities and handle the claims process in a proactive, customer-friendly way, they can gain significant commercial advantage through improved brand perception, increased customer loyalty and additional customer insight."
The whitepaper is in three main sections - an introduction, Operational Challenge, and Strengthening Customer Relationships - and can be downloaded here.