Customer complaints data

July - December 2014

Lloyds Banking Group is continuing to deliver on our ongoing commitment to reduce complaints on our journey to become the best bank for customers.

Our results show that the Group continued its progress to the end of 2014 having reduced the total number of complaints received from the first half of the year.

  • When compared with H1 2014 Lloyds Banking Group FCA total reportable complaint volumes have fallen by 13% in the second first half of the year. Total complaints fell from 580,773 in H1 2014 to 503,986* in H2 2014.
  • Excluding the impact of PPI, complaints decreased by 2% over the same period, from 129,469 to 126,876.
  • PPI complaints continue to reduce and, when comparing H2 volumes with H1, have fallen by 16%. While these types of complaint are wholly valid, they reflect a product we no longer sell and therefore do not give a true representation of our current customer service levels. We remain committed to proactively manage PPI legacy complaints in order that customers receive redress if they have been mis-sold.
  • The Group has seen a significant reduction in volumes of complaints referred to the Financial Ombudsman Service (FOS). Over 2014 we have seen a 46% reduction in volumes, with a 25% drop in the final six months of 2014. Furthermore, the figures show that complaints to the Ombudsman relating to the Group’s brands are falling at a faster rate than any other major bank.
  • In addition, the FOS change rate results show Lloyds Banking Group is leading in the industry when compared to its peers with an average of 28% across all products in H2 2014. The Group is also leading in a number of its product groups including banking and Investments. These results highlight that we are continuing to make the right decisions for our customers.
  • Our end of year results for 2014 show that we have improved our customers’ view of complaint handling by 4 points in our branches and 8 points in our telephony centres when compared to our position at half year. This is measured by the Net Promoter Score, the industry-wide metric that rates the likelihood of customers recommending us to others.

“We remain absolutely committed to reducing complaints, and are pleased that the overall picture remains on a downward trend. This evidences that we are improving the experience that our customers are receiving.

The significant reduction in the number of referrals to the Ombudsman and our excellent change rate is encouraging; it shows that when customers do have cause to complain, the quality of our complaint handling is strong and that we are making the right decision for our customers.

As a Group we work hard to make sure we fix the things that cause our customers to complain in the first place. This is central to our goal of becoming the best bank for customers. In working closely with our customers and colleagues we are able to better understand our customer’s needs and improve the overall customer experience” says Martin Dodd, Customer Services and PPI Director.
*figure amended to reflect inclusion of TSB data

Putting Customers First

As part of our strategy to become the best bank for customers, we are continually listening to customer’s feedback to improve their banking experience. The Group continues to invest in Root Cause Analysis and Simplification activity to address the root causes of customer complaints and improve the supporting complaints processes.

Throughout 2014 we delivered 213 improvements, which addressed the cause of complaints and have reduced volumes by c5,000 complaints per month. Below are a few examples of how we are improving the service we offer our customers

  • · We have improved the customer experience when applying for a credit card. Initially customers were unable to set up a direct debit when taking out the credit card from our branches; instead they had to set this up once the card was activated. Therefore, there was potential risk that customers wouldn’t have the opportunity to set up their direct debits before the first charging cycle, which was inconvenient for customers and could mean that they missed payments and potentially incurred fees. We recognised an opportunity for improvement and now direct debit details can be set up straight away by our colleagues.
  • · Our customers were telling us that during a mortgage application they were not getting adequate updates and that they were finding out late into the process that key documents were outstanding or that we required additional information. We have taken this feedback on board and now implemented an SMS service to keep the customer informed throughout. This is a great example of how we are making things clearer for our customers

We will continue to listen to our customers and work to remove the cause of their complaints. Our success is a critical component in the Group achieving its vision of becoming the best bank for customers.

More information…

To help you interpret the information we have provided a glossary of terms which explains key references in the publication reports.

The Financial Conduct Authority publishes collective complaints data covering all firms.

The Financial Ombudsman Service publishes separate complaints data on the number of complaints referred to it by individual firms.

To view complaints information for any firm of Lloyds Banking Group reporting more than 500 reportable complaints in the previous six month reporting period you can click on the links below each of the brands.