Nedbank and Capitec had the biggest increases in the number of complaints, while Standard Bank and FNB grievances dropped, and Absa had the lowest number of cases among the big banks and remained level.
This information is contained in the Ombudsman for Banking Services (OBS) 2022 report released on Wednesday.
Nedbank complaints increased by 18% from 1 273 in 2021 to 1 508 in 2022.
Capitec grievances rose by 11% from 1 651 to 1 826, while Standard Bank dropped by 31% from 2 070 to 1 385, and FNB decreased by 21% from 1 452 to 1 147.
“Absa had the lowest number of cases among the big banks and remained level from 1 068 compared with 1 063 in 2021,” the OBS said.
Ombudsman for Banking Services Reana Steyn said although the report records statistics of complaints to individual banks, the number of files opened per bank is, however, not indicative of the individual bank’s complaints handling performance or performance in general, for that matter.
“Banks vary considerably in size, client profile, and product mix, and these factors all impact the number of complaints made against a bank.
“Comparing the number of clients, the growth of the client base for some, and more importantly, the number of successful banking transactions taking place every day, the low total number of complaints at the OBS could be indicative of the fact that things mostly work the way they should in the South African banking space,” she said.
According to the report, African Bank saw 72% of referrals being converted to formal complaints, followed by Nedbank at 64% and Tyme and Bidvest banks, both at 53%. FNB converted only 34%.
“The bank with the best average turnaround time, referring to the number of days it took to close complaints, on average, was Capitec, 58 days. Standard Bank had the worst average turnaround time, 73 days,” the OBS said.
Capitec also had the highest percentage at 85% of cases being decided in its favour, while Nedbank had the lowest at 72% in its favour.
According to the OBS, although banks appear to be making greater efforts to resolve some types of consumer disputes internally, banking fraud related to current accounts and internet banking remains high on the list of complaints to them.
The OBS said it continued to identify and record complaints in the Vulnerable Consumers category.
The OBS describes a vulnerable consumer as “someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels of care.”
Steyn said that this is still an evolving concept. “In compiling our categories of vulnerable consumers, we had due regard to the types of complaints we have dealt with over many years as well as international precedents.”
The OBS identifies vulnerable consumers according to age, people over 65 years, life events, such as the death of a spouse or retrenchment, disability, financial literacy, and discrimination.
Steyn said: “A total of 307 such complaints were recorded (4% of all complaints opened in 2022). The fact that 6% of these complainants were over the age of 85 years, and 24% between 75 and 85, remains a concern. Retrenchment, at 28%, is also evidence of the economic hardship facing many consumers.”
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