The question of how to deliver a customer remediation programme effectively is a hot topic in financial services. In line with the demands of regulators, lenders must be able to identify and remediate customer account errors promptly, but achieving this isn’t without its challenges.
So, what is the most effective way for your business to deliver a remediation programme? Here are our top tips for excelling in this sensitive area, for both yours and your customers’ benefit.
What is Remediation?
The purpose of financial remediation can be expanded beyond simply reimbursing the customer. Effective remediation processes can also serve to:
- Restore and build consumer trust.
- Minimise and mitigate further impact by quickly identifying root causes.
- Facilitate improvements in how issues are managed going forward.
- Increase transparency, for management and regulators, of issues and corrective actions.
When it comes to developing a customer remediation framework that delivers on all these objectives, there are a few key points to consider.
A fundamental factor in the success of a business’ remediation programme is the speed at which conciliatory action can take place. Both technology and staff have a role to play when it comes to increasing the speed of the process, and several areas benefit from investment:
- Technology: are your systems capable of effectively guiding and streamlining the remediation process?
- Contact: are your staff trained to respond to customers’ unique circumstances, offering the correct support and guidance?
- Review: do you have a system in place to conduct root cause analysis and enable continuous improvement?
Strategic investment in the remediation programme can be a lengthy process, but the benefits are undeniable. As an alternative, many financial service providers choose to outsource some or all of their customer remediation processes.
A customer-centric communications strategy should be implemented in all remediation processes. By identifying and responding to the customer’s needs and circumstances, you can add value and improve the customer experience.
Practically, this involves:
- Offering multiple communication avenues: for instance phone, email and live chat.
- Using plain, non-technical language the customer can understand.
- Being flexible and adaptable: working with the customer towards the desired outcome.
By prioritising the needs of the customer and altering remediation processes to match these needs, you can proactively work towards the best outcomes.
Customer remediation in banking and finance is complex, and many businesses benefit from the expertise of a specialist outsourcer. Besides experience, there are a number of benefits outsourcing can offer.
Where infrastructure and resources are lacking, outsourced remediation processes can represent excellent cost efficiency, as they reduce both set-up and recruitment costs. Opting for an outsourced solution instead provides clear, fixed costs.
Customer remediation support providers also have the knowledge and ability to respond rapidly to regulatory challenges, which in turn mitigates risk.
With tailored solutions, outsourcing providers can often seamlessly integrate with existing processes, which is a bonus for businesses wishing to maintain elements of the remediation programme in-house.
Customer Remediation Support from Target
With customer remediation support from Target, you can gain the expertise, robust management and governance to deliver the right customer outcomes.
To find out more about our specialist services and how we can improve your remediation processes, contact us today.