Credit, Collections & Insolvency News
The Business Banking Resolution Service (BBRS) consultation for a new business complaints service has reflected a high level of demand for the new service following an exercise with stakeholder organisations.
The work has been undertaken to ensure the service is developed in line with the needs of its customers – for both historical and contemporary cases – in what is a particularly uncertain period for SMEs.
The BBRS is a non-profit organisation set up to resolve disputes between larger eligible SMEs and participating banks and will fully launch in the autumn. Seven major banks have worked in partnership with SME stakeholders to launch this new, free, service. It has been designed to take a personal and flexible approach to each case and will use a range of Alternative Dispute Resolution (ADR) techniques to resolve SME complaints.
The Live Pilot customer focus group report explored the personal experiences of customers or their representatives taking part in the Live Pilot. It found that:
Respondents said that the BBRS “offered hope” for finding a resolution to ongoing complaints which they were not able to find elsewhere
Customers appreciated the bespoke service they received and the BBRS’ Customer Champions were seen as particularly helpful in supporting businesses through the process
Although not in doubt by those taking part in the Live Pilot, respondents highlighted the need to demonstrate the BBRS’ transparency and independence as part of its launch
In light of covid-19 and the context in which the service will launch, the BBRS has also spoken to a range of stakeholders – including those who advise businesses and those who work in public policy – as part of a broader consultation process. The summary report highlights that:
There was understood to be a current gap for businesses too large to use the Financial Ombudsman Service but for whom it would be onerous to challenge a bank in court – ADR and the BBRS were believed to offer a good solution to this
Respondents recognised many advantages of ADR, including perceived ‘softer’ benefits, such as the potential for privacy during the process; the ability to protect relationships between SMEs and banks; and the space to air grievances and have them heard. For many cases, full adjudication will not be necessary and there is clearly value in schemes such as this, that use a variety of ADR techniques to achieve resolution
Chair of the BBRS, Lewis Shand Smith said “We are committed to ensuring that the BBRS will be the subject of continuous review and improvement and listening widely to people’s experiences is part and parcel of that. These reports show the in-depth consultation processes we have undertaken to ensure the service is ready to go live in the autumn.”
“We tailor our approach to the needs of the individual and to the nature of the dispute. We are committed to learning and improving and, while delighted by the positive feedback received, we are equally happy to act on the suggestions for improvement.”
“Once the BBRS has launched in autumn, together with the banks and key stakeholders who represent the SME community, we shall be raising awareness of the services we offer with the aim of bringing resolution to a meaningful number of complaints.”