According to the Annual Report of the Ombudsman for Banking Services (OBS) there was a significant increase in cases for most Banks when compared to 2019. Only Absa Bank recorded a reduction in complaints (down 36% year-on-year).
Reana Steyn, Ombudsman for Banking Services, cautioned that the number of files opened against a bank should not necessarily be regarded as an indication of that Bank’s overall or complaints handling performance. She highlighted that banks vary in size, client profile and product mix. In addition, fraudsters seem to periodically target certain groups of customers. All of these factors impact on the number of complaints made against any given bank.
The following number of formal cases were opened against the five big banks in 2020. The individual increases should be seen in light of the overall increase in number of complaints received by the OBS:
- Absa bank saw the number of complaints opened against it with the OBS decrease from 1 483 in 2019 to 943 cases in 2020, a 36% decrease from the previous year. (2018: 1776 cases);
- First National Bank had 2 197 complaints opened against it, a 22% increase from 1 707 cases in 2019 (2018: 1 560 cases) ;
- Standard Bank had 1 572 complaints opened against it, an increase of 28% (1 127) from the previous year (2018: 1 203 cases);
- Nedbank had 1 217 cases opened, an increase of 10% (2019: 1 094 cases, 2018:1 265 cases); and
- Capitec Bank had 1 259 cases opened against it, a 39% increase (2019: 763 cases 2018: 1 001 cases).
“As we move forward in this challenging environment, we encourage consumers to have an open relationship with their bank and know that they can come to the OBS if they cannot be assisted by their bank. Further, we urge consumers to be aware that the current environment is heavily conducive to fraud. Please be vigilant,” Steyn concludes.
