Customer complaints rising fast, bankers lacking empathy: RBI

Reserve Bank Deputy Governor Swaminathan J has rued a “lack of empathy” among bankers, even in the face of rising number of customer complaints around serious aspects like fraud.

Speaking at an event of RBI-promoted NIBM (National Institute of Bank Management) on July 12, Swaminathan said there is “increasing automation but decreasing ownership”, and customers have to contend with template emails and helplines loop back “endlessly”. He made it clear that addressing these issues will be essential if bankers were to sustain people’s trust in the system.

“The number of customer complaints — especially through digital channels — has risen significantly in recent years. From social engineering frauds to poor grievance redressal, the loss and frustration is real. Often, the problem is not the product or service, but, as I see it, the real issue is a lack of empathy,” the commercial banker-turned-regulator said in his valedictory address to the students.

Nowadays, KYC (know your customer) is often reduced to a “periodic ritual”, he said, exhorting bankers to bring back that responsibility even in a digital context.