In accordance with the stipulations of Article 17 of the Ministry of Economy Order ECO/734/2004, dated March 11, regarding customer care and consumer ombudsman departments at financial institutions, and in line with the new "Regulations for Customer Protection in Spain" of the BBVA Group approved by the BBVA Board of Directors on September 27, 2011, regulating the activities and powers of the Customer Care Service and Customer Ombudsman, a summary of related activities in 2014 is included below.
The Customer Care Service processes all the grievances and complaints addressed to the Customer Ombudsman and to the Customer Care Service itself, except for those which under the new Regulations are the responsibility of the Customer Ombudsman.
13.1. Report on the activity of the Customer Care Service department in Spain
Statistical summary of the grievances and complaints handled in 2014
The number of customer complaints received by the BBVA Group’s Customer Care Service in Spain in 2014 is 11,549 (19,010 in 2013), of which 1,164 have finally not been processed because they did not meet the requirements of Ministerial Order ECO/734. A total of 91.9% of the complaints, 9,546 cases (17,091 in 2013), have been resolved within the year, and 839 complaints (818 as of December 31, 2013) had not yet been analyzed as of December 31, 2014.
The grievances and complaints handled are classified:
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Number of Complaints | |
|---|---|---|
| Final Resolution for Complaints to the Customer Service Center |
2014 | 2013 |
| In favor of the person submitting the complaint | 3,628 | 7,250 |
| Partially in favor of the person submitting the complaint | 1,529 | 3,659 |
| In favor of the BBVA Group | 4,389 | 6,182 |
| Total | 9,546 | 17,091 |
The principles and criteria used by the CCS to resolve complaints are based on the application of the rules on transparency and customer protection and best banking practices. This department takes its decisions independently, notifying the various units involved of any actions which require review or adaptation to regulations.
Recommendations or suggestions
In 2014, the Customer Care Service has implemented various initiatives in order to ensure compliance with best practices. These initiatives include:
- Reorganization of the Quality Governance existing in BBVA, in order to identify root causes and recurrent systemic or potential problems, drawn from customer dissatisfaction and avoiding repetition in time, There is a new tool that allows manage claims efficiently, knowing at any moment what stage are those claims and the average resolution time, outstanding and solved claims, etc. This will improve the Quality management itself, detecting what stage of the process causing delays in customer response and proposing action plans that will allow to reduce these resolution deadlines.
- Also, 2014 was the year of the claims management model consolidation that began the previous year, where the Unit has organized with a closer and personal approximation to the customer with specialized teams for each sort of customer and complexity. For example, a Premium customer, with more experience and sophisticated products, requires a particular specialization in customer relationship and motivation in its resolutions different than standard client or a company or an SME.
- Training programs on specific aspects of the Bank of Spain's criteria (auxiliary accounts, documentation to provide to the customer for loans, etc.) that would promote proper decision-making in the resolution of complaints lodged by customers, in each of the different topics.
- Publication of guidelines and criteria on the Quality Portal for dissemination to the branch network.
13.2 Report on the activity of the BBVA Group Customer Ombudsman in Spain
The following is a summary of the 2014 annual report outlining the activities of the BBVA Group’s Customer Ombudsman in Spain, in accordance with the provisions of Article 17 of Ministry of Economy Order ECO/734/2004, dated March 11, on customer service departments and services, and Customer Ombudsmen for financial institutions:
Statistical summary of the grievances and complaints handled in 2014
889 customer complaints were received by BBVA’s Customer Ombudsman in 2014. Of these, 54 have finally not been processed as they did not fulfil the requirements of Ministerial Order ECO/734. A total of 90.33% of the complaints, have been resolved within the year, and 32 complaints had not yet been analyzed as of December 31, 2014.
The grievances and complaints handled are classified in the table below in line with the criteria established by the Complaints Service of the Bank of Spain in its half-yearly requests for information:
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Number of Complaints | |
|---|---|---|
| Type of Complaint to the Ombudsman | 2014 | 2013 |
| Insurance and welfare products | 303 | 364 |
| Assets operations | 257 | 1,192 |
| Investment services | 73 | 117 |
| Liabilities operations | 106 | 97 |
| Other banking products (cash, ATM, etc.) | 34 | 29 |
| Collection and payment services | 14 | 33 |
| Other | 102 | 160 |
| Total | 889 | 1,992 |
The details of the complaints resolved in 2014 and 2013, broken down according to their final resolution, are as follows:
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Number of Complaints | |
|---|---|---|
| Final Resolution for Complaints to the Ombudsman |
2014 | 2013 |
| In favor of the person submitting the complaint | - | 1 |
| Partially in favor of the person submitting the complaint | 352 | 794 |
| In favor of the BBVA Group | 451 | 1,043 |
| Total | 803 | 1,838 |
Based on the above, it can be concluded that 44% of customers bringing a complaint before the Customer Ombudsman are in some way satisfied, either as a consequence of the final resolution of the Ombudsman or because of its role as a mediator between the customer and the entities composing the BBVA Group.
The Customer Ombudsman's decisions are based on current legislation, on the contractual relationships in place between the parties, on current standards on transparency and customer protection, on best banking practices and, especially, on the principle of equity.
Independence is an essential aspect of the Customer Ombudsman. The decisions handed down by the Ombudsman in favor of the customer are binding on the affected Group entity.
Recommendations or suggestions
Among the various initiatives implemented by the Group at the behest of the Customer Ombudsman in 2014, the following are worth noting:
- Recommendations have been made on adapting the product profile to the customer profile, with special emphasis on the need for greater provision of accurate information on the products offered to customers by presenting them with all necessary data and documentation to that end.
- The main purpose is to promote compliance with regulations on transparency and customer protection, providing criteria and possible actions for improvement, and paying special attention to its mediation between the customers and the Entities in order to reach an amicable agreement, within the limits set by regulations.
- In partnership with Quality, Legal Services in Spain and Portugal, and the Customer Care Service, a Complaints Committee has been set up, which meets on a monthly basis with the participation of various of the Group's Units and Areas in Spain to discuss and share problems, ideas or suggestions related to the grievances and complaints lodged by the customers, in order to improve the Group's complaints system and thus contribute to providing better and more satisfactory care to the customers.
- Group representatives are in constant contact and meet regularly with the Complaints Service of the Bank of Spain, the CNMV and the Spanish General Directorate of Insurance and Pension Funds, with the common goal of harmonizing criteria and fostering more robust customer protection and security.
Customers not satisfied with the resolution of the Customer Ombudsman can appeal before the Bank of Spain, the CNMV or the Spanish General Directorate of Insurance and Pension Funds. The Ombudsman always informs the customers of this option.
In 2014, the number of complaints examined or resolved by the Customer Ombudsman and subsequently presented by the customer before the supervisory bodies is 115.