Naturally, disputes can be a source of friction, which is why it’s so important to employ the right methods to ensure this friction is kept to a minimum. Legal companies, such as Affordable Justice, can play a very helpful role in this type of dispute management; however, companies themselves must also make an effort to prevent friction from occurring as much as possible.
With the rise of digital transactions, the number of disputes across financial institutions is growing. Despite this, disputes cost financial companies a considerable amount of money, with around 25 million transactions being disputed in the US alone. In fact, the top 15 American banks spend around $3 billion every year on dispute processing. To that avail, detailed below are just some of the top tips for better dispute management in financial services.
Comply with Regulations but Don’t Allow Them to Define the Customer Experience
There are a number of consumer and regulation protection laws out there, and these are sure to amplify the pressure. This is because back-office processes and research teams are placed under this pressure to comply with federal and state regulations. This compliance must be carried out every step of the way to ensure that everything is being dealt with fairly and accurately. Regardless of how closely regulations have been followed, resolution timeframes can still vary anywhere from 30 days to over 90 days. Sadly, ensuring this compliance can sometimes distract a bank from its duty to provide a pleasant experience for customers.
Avoid Costly Manual Errors
Manual errors can cost banks a significant amount of money, especially when the process is already a time-intensive and manual process. These delays come from an absence of ready information, which can be detrimental to both the accuracy and speed of a case. Similarly, unintentional errors that come from storing, retrieving, or verifying customer information can present themselves at any point. This might include miscalculations, wrong charges against authorized services, charges on unauthorized services, and failure to send statements. These all tend to be a result of manual errors, and it’s these errors that will have created the original customer dispute in the first instance. Ultimately, errors of any kind are sure to harm an already strained customer relationship.
Don’t Allow Legacy Lock-In Hold You Back
It’s true that financial services wouldn’t be where they are today without technology; however, this doesn’t mean that technology is without its challenges. Banks were among the first industries to embrace digitalization, meaning that the banking landscape is now a technologically complex one. For instance, IT systems that are adopted at different times sometimes can’t work effectively with one another. Alternatively, some banks still operate with systems that were established a number of decades ago. Ultimately, technological processes can lock in information and hold you back just as much as it can aid you.
Break Down Process Silos
Various stakeholders, separate IT systems, disconnected functions, and siloed processes can all be obstacles in dispute resolution. Banks require a complex network of institutions, but if these aren’t functioning seamlessly, they can be more of a hindrance than a help. For instance, credit history disputes can involve a number of institutions, which is why it’s so important for banks to break down processes in ways that are accessible to everyone.
Keep Your Customer Informed
Last but certainly not least, the customer must be informed at all times. In instances of dispute, no news is far worse than bad news. Even if you don’t have anything positive to share, the customer must be kept in the loop.
Read Next Blog: