BankTech

8 Amazing Banking Insights from 3 Mn+ Data Points on Consumer Complaints (U.S.)

MEDICIFounder and Chief Strategy & Innovation Officer

In this exclusive in-depth analysis, a banking domain expert sat down with an analytics team and analyzed 3 years data of U.S. Consumer financial Protection Bureau (CFPB) of consumer complaints to understand the service levels in financial services. We bring to you this exclusive piece of information with points 1 to 4 on Macro level analysis and points 5 to 8 on Micro level analysis. It covers all types of financial services products from Bank Accounts to Credit Cards and from Mortgage to Money Transfers.

1.) Which states filed the most complaints?

The state of California filed the most number of complaints at around 46,000 in 2014. California was followed by Florida which filed around 30,000 complaints. This was followed by New York and Texas, both having filed around 20,000 complaints. The interactive chart below gives more insights on the same:

U.S. Heat Map based on Number of Complaints

Note: Click here to see the interactive chart

2.) Highest number of complaints were in Mortgage product, across 2012, 2013, 2014 and least in the case of money Transfers

product wise chart

3.) Sharpest increase was in Debt Collection and Credit Reporting (in reference to the chart above)

From 2012 to 2014 Debt Collection and Credit Reporting saw a huge jump in consumer complaints.

4.) Complaints by Company

company wise chart

5.) Complaints witnessed in Bank of America

bofa chart

BofA has extensively focused on Mortgage issues and has brought down the complaints in that specific area. They have also managed to bring complaints related to credit cards down.

6.) Complaints witnessed in Capital One

capital one chart

Capital One has extensively focused on Credit Card issues (being their main focus area) and has brought down the complaints in that specific area marginally. They have also managed to bring complaints related to Mortgages and Bank Account or Service by considerable numbers.

7.) Complaints witnessed in other companies (long tail banks, other financial services companies)

other companies chart

Considering the small banks, a common trend is the substantial rise in number of complaints related to Debt Collection. Other issues related to Mortgages, Credit Card, etc. have been on the rise as well but Debt Collection issues have increased in big numbers especially from 2013 to 2014.

8.) Some other Macro level trends that have been witnessed

late response chart

The above chart covers different product types and represents that in how much time was the response given by the company. Companies took the most time in addressing issues related to Debt Collection and Payday Loan related issues. However, companies took the least amount of time in addressing Credit Reporting and Credit Card related issues.

complaint relief chart

The above chart represents only those issues that had more than 1000 complaints and the way they have been resolved. More than 60% of Payoff Process issues were resolved without any form of monetary relief. While in case of Late Fee issues, around 50% of them were resolved through some form of monetary relief. In resolving issues related to Credit Report/Credit Score, companies hardly took the route of providing some of monetary relief for resolving them.

Note: The above charts in this article have been taken from a series of content prepared by Knowledgefaber Analytics team. In this particular case, the analytics team worked on a dataset of more than 300,000 lines of data on consumer complaints (US Consumer Finance Protection Bureau) to come up with the insights and charts. If you have a customized requirement to understand consumer complaints insights in financial services, at a Macro/Industry or Micro/Company level, please use this form. You can also reach out to us for any custom analytics requirement.

Amit Goel

MEDICIFounder and Chief Strategy & Innovation Officer

“Amit Goel is the Founder & Chief Strategy & Innovation Officer for MEDICI. Amit’s vision is to build a strong FinTech market network that involves financial institutions, banks, startups, investors, analysts & other key stakeholders across the ecosystem – helping each one of them in a meaningful way by removing the asymmetry of information and providing a platform to engage & transact.\ \ Amit is passionate about bringing actionable FinTech-focused insights, innovative products & services for the FinTech ecosystem. Some of his work involves startup scores, bank scores/assessments, predictive viewpoints & other innovations that have helped MEDICI’s customers and the ecosystem. He has been named amongst the Top 100 FinTech thought leaders/influencers in the world & Top 10 in Asia multiple times by reputed agencies, consulting firms as well as financial institutions. Amit has built MEDICI (formerly LTP) as a new-age, tech-enabled advisory/research firm, which is now considered the #1 global research & innovation platform for FinTech in the world.\ \ Amit has been writing pioneering viewpoints on financial technology space that have been ahead of the curve since 2010. His data-driven predictions have helped the customers as well as the ecosystem. His past work experience includes a strong background in strategy & market analysis and advisory to clients (from big business houses to Fortune 500 firms) in payments, commerce, financial services & IT/technology. In the past, Amit had also founded a successful consulting & research practice called GrowthPraxis and has worked at Boston Analytics, Frost & Sullivan, and Daimler Chrysler in strategy & research.”