British Banks Should Use Systems Thinking Theory

Britain's banks need to improve customer service levels and they can do this by applying systems thinking theory.

Research by YouGov revealed that nearly a third of people complained most about the UK's financial services companies which was a higher number than those who complained about businesses in the utilities sector, retailers and restaurants.

Britain's big five banks have enjoyed increased profits since the economic downturn but the number of complaints they have suffered has dramatically increased as consumers are becoming more dissatisfied with their services.

The Independent newspaper reported that over a million people companied to Lloyds, Royal Bank of Scotland/NatWest, HSBC, Barclays and Santander in the last quarter of 2010, which is an increase of 15 per cent on the previous year.

YouGov's research, which was commissioned by Avande, also discovered that British consumers are more demanding when it comes to their customer service experience following the aftermath of the recession.

More than 80 per cent of consumers though British businesses should make more of an effort to keep them happy and just five per cent felt that customer service levels had actually improved over the previous three years.

Fraser Moffat, senior director at Avanade, said: "Consumers are clearly feeling the brunt of corporate cost-cutting in all sectors, but with large profits made by the high street banks, it is understandable why the financial services industry is taking the brunt of complaints."

Britain's banks would benefit from employing the services of performance improvement consulting professionals as these consultants will be able to apply systems thinking theory in order to improve customer service.

Using systems thinking theory will be enable bank managers to view their organisations from a customers' perspective and also from a broader point of view so that they can focus on the bank as a whole system instead of various departments.

Applying systems theory, through the help of performance improvement consulting experts, can improve customer service levels at the same time as reducing mistakes and eliminating waste in all departments.

António Horta-Osorio, Lloyds' new chief executive, recently revealed that he is aiming to reduce complaints by 20 per cent and that this target represents a commitment to improving complaints, according to the Guardian.

He told the newspaper: "This ensures we are focused on getting things right for customers, and where we don't, putting it right quickly and efficiently."

The Financial Services Authority recently fined RBS £2.8 million for consistently failing to deal with customer complaints.


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Himsworth Consultancy is a leading Management Consultancy firm of senior business and peformance improvement consulting professionals that can improve customer service through systems thinking. Click on the links to find out more.