Inside 6 Billion High-Risk Customer Conversations

When we consider large-scale data sources in financial institutions, we may think about credit reports, transaction data, and customer behavior data. Similarly, what value do we apply to customer conversation data? Is your institution approaching your customer conversation data as a large-scale data source with golden nuggets of valuable insights waiting to be uncovered? With the PositivityTech intelligent platform, you can do just that and turn negatives into positives.

In the United States alone, call centers across industries receive approximately 50 billion calls each year. Many of these calls, driven by frustration, present major risks for your business and can lead to customers:

  • Closing their accounts and ending their relationships with your institution
  • Not making their payments
  • Bringing legal action
  • Citing bias and discrimination
  • Highlighting areas of regulatory concern

A critical step to meeting customers’ concerns is understanding who your customers are — and why they are complaining.

Get to know your customers

Yes, institutions know their customers because they analyze their customer behavior and transaction patterns. Now, imagine adding this powerful data to understand your customers: customer conversations. By using customer conversation data, institutions can understand who their customers are, based on what they tell you about themselves.

Simplicity, empathy, and equity: Get to know why your customers are complaining

Once you know who your customers are based on their conversation data, then you can understand why they are complaining — by providing them with simplicity, empathy, and equity. Customers need to understand policies, know that they’re being listened to, and see that they’re on an equal playing field with their institutions. Ensuring that these core components are in place and equipping individuals who create policies with direct access to these raw conversations, will enable your institution to avoid practices that lead to unintended consequences and will improve customer outcomes.

The scale of customer complaints is enormous and ready to be tapped with PositivityTech

If your business is like most businesses, you are approaching customer narratives transactionally and to meet immediate needs. Yet, you may not be approaching them as strategic assets that can pinpoint systemic problems, give you a competitive edge, and lead to business growth. The current scale of customer complaints — and the value you’re missing — is enormous:

  • 6+ billion “high-risk customer conversations” a year take place in the U.S.
  • 90% of businesses state that customer experience will overtake price and product as brand differentiators.
  • A typical business hears from 4% of their dissatisfied customers; for every customer that bothers to complain, 26 others remain silent.
  • $75 billion is lost by businesses annually due to poor customer service.

Four major pain points for financial institutions

Explore some of your greatest pain points — as publicized in the media and in your own customers’ complaints, as seen in PositivityTech:

Pain Point #1: Overdraft fees

Two years ago, we reported on a major issue that customers face: overdraft fees. In their responses to customer complaints about overdraft fees, banks often provide monetary relief, acknowledging the challenges they face in the execution of regulations.

In the media: These 10 banks are rethinking overdraft fees. Here’s why and how

In this American Banker article, Ally Bank CEO Jeffrey Brown captures the issues that overdraft fees present: “Overdraft fees are a pain point for many consumers but are particularly onerous for some. It is time to end them… Eliminating these fees helps keep people from falling further behind and feeling penalized as they catch up.”

Inside PositivityTech: Customer complaint about overdraft fees

“Please help. I applied for an apartment and this apartment turned out to be fraudulent. I filed a claim with XXX and I submitted the screenshot they requested and they still three months later close the case and continue to have my account negative over {$1000.00} and have continued to accumulate {$35.00} overdraft fees for months. I have contacted XXX and asked for this money to be returned and they say that the case is closed and I have to re-open a new case.”

Pain Point #2: Student loans and income sharing agreements

Income sharing agreements, a student loan product, are currently under regulatory scrutiny.

In the media: Can banks allay concerns about emerging student loan product?

In this American Banker article, one of the major issues with income sharing agreements is pinpointed: “Critics say banks could face reputational risks from working with a sector that is increasingly targeted for alleged consumer protection abuses, such as requiring expensive prepayment penalties, which some experts argue is illegal under the Truth in Lending Act.”

Inside PositivityTech: Customer complaint about student loans

“I secured this ‘income sharing’ loan, which was not correctly explained to me by the agent, with the very clear definitive understanding I was agreeing to a 36 month term… They don’t talk about interest rates but they only talk about a percent of your income and sell you on the concept that if your income goes down then so does your payment.”

Pain Point #3: Closed accounts

When financial institutions close accounts in an attempt to prevent fraud, they may mistakenly close accounts that are not fraudulent.

In the media: Chime customers file hundreds of CFPB complaints over locked accounts: report

In this Banking Dive article, Chime’s move to close accounts is explained: “In an attempt to root out fraud related to the government-backed pandemic aid, the fintech may have inadvertently closed hundreds of legitimate customer accounts.”

Inside PositivityTech: Customer complaint about closed accounts

“XXX closed my account out of nowhere. They said I was not in compliance with the XXXX bank’s internal policies. All I do is receive my direct deposits from work, and spend my money on things I need. I have not violated any rules or regulations. They closed my account and left me stranded with no money.”

Pain Point #4: Loans without borrowers’ consent

When financial institutions provide individuals with loans without their consent, consumers may find themselves in debt, without knowing why.

In the media: GreenSky facilitated loans without borrowers’ consent: CFPB

This American Banker article details the scale of loans that GreenSky provided without consent and the customer complaints they faced as a result: “GreenSky has been fined $2.5 million and forced to refund up to $9 million in loans the fintech allegedly allowed its merchant partners to take out on behalf of customers who hadn’t authorized the financing.”

Inside PositivityTech: Customer complaint about loans

“We received a bill for {$14000.00} from XXX on XX/XX/2019, with an interest rate over 25%. However, we have never agreed to any loan from XXX, we have never signed any financing paperwork or approved anything related to a XXX account or loan whatsoever.”

Empower people to turn negatives into positives

With PositivityTech, you can finally analyze your customer voice data and link complaints to the policies and tactics specific to customer frustrations. You can demonstrate that as you actively listen to your customers’ voices and proactively address issues, you will also inspire others to raise their voices. You will save a magnitude in fines, improve customer retention, attract new customers, and significantly increase your bottom line. This is good for your customers, your brand, and your business.

I invite you to schedule a PositivityTech demo today. The scale of your customer conversation data is enormous and ready to benefit you and your customers. Please email me at marcia.tal@positivitytech.com