To the layman, the independence of an ombudsman that is funded by the industry it oversees could be called into question when one considers that 73% of cases were resolved in favour of the banks in 2021. Looking at the past three years, the split seems to be roughly 70/30, with 71.6% of cases resolved in favour of banks in 2020; 72% in favour of banks in 2019 and 74.3% in favour of banks in 2018.
Consumers are required to try to resolve their complaints with the banks first, before approaching the ombudsman. However, many go straight to the ombud and are then referred back to the bank with a complaint number to see if it can be resolved within 20 days. The ombud had 10,330 referrals in 2021. If a referral is not resolved or the complainant is still unhappy, Steyn’s office opens an investigation.
The banks were held 100% liable for complainants’ claims in 15.9% of 2021’s complaints. In 4.5% of these complaints, the banks were found partially liable. This means that in 1,639 matters adjudicated in 2021, Steyn’s office concluded that there was some wrongdoing on the part of the banks.The overwhelming majority of the complaints opened and investigated in 2021 were related to fraud. Internet banking complaints retained top spot as the highest percentage of complaints .
First National Bank was the only bank that saw a significant decrease in complaints. According to Steyn, this dramatic drop can largely be attributed to initiatives to ensure the bank aligns itself with the Treating Customers Fairly principles and the requirements of the Conduct of Financial Institutions Act.