Charter UK welcomes the launch of a new body that will set standards for 'culture, competence and customer outcomes' in banking.

Mon 5th May 2014

A new watchdog charged with rehabilitating the reputation of UK banks in the wake of a series of mis-selling and market rigging scandals is to be launched later this year. The UK's seven largest lenders have agreed to report each year to the Banking Standards Review Council (BSRC), who in turn will publish an annual report detailing where banks have failed and where they are improving. 

Paul Clark, CEO of Charter UK, believes the creation of an independent watchdog focused solely on rebuilding trust is a positive move for both banks and their customers. "While some organisations may regard consumer protection initiatives like these as burdensome, forward-thinking firms will see the arrival of the BSRC as an opportunity to increase their customer focus and to implement business improvements that will have an immediate impact on the bottom line," he stated. 

"For this reason, it's particularly encouraging to hear the BSRC plans to examine complaints data and customer satisfaction, as this will encourage firms to improve their service standards and re-examine how they interact and engage with their customers. Some of the UK's leading banks are already using this kind of data to understand the complete customer journey and focus on the changes that will yield immediate results." 

However Mr Clark warned that crucial to the restoration of trust will be the BSRC working to ensure that banks have the right people, platforms and processes in place to determine the root cause of recurring problems so that they can be addressed and fixed at source. 

"With this approach, the UK's banks will be able to implement a strategic step-change that not only supports the BSRC's objectives, but which also enables them to use customer feedback to reduce costs, boost revenue and improve efficiency at the same time," he said.