In the past five years, the financial industry has received approximately 2.3 million complaints, 98% of which are related to the banking industry, with the rest involving insurance and takaful.
Bank Negara's Deputy Governor, Datuk Choo Siew Lian, said that the number of complaints has increased by an average of 65% compared to 2020, reflecting the increasing complexity of financial services, as well as the heightened awareness and expectations of consumers.
"Conversely, complaints submitted through the Bank Negara Malaysia LINK (BNMLINK) channel have decreased by 37% during the same period. This indicates that the continuous improvement of complaint channels by financial service providers has effectively helped consumers obtain the support they need, reducing the number of complaints that need to be submitted to BNMLINK."
"As financial service providers implement higher standards to treat customers fairly and manage customer complaints, we expect this number to further decline."
Choo Siew Lian stated this while speaking at the launch of the Financial Ombudsman Service (FMOS) today (17th).
She pointed out that the latest national customer satisfaction survey commissioned by the banking and insurance industries shows that customer loyalty and overall customer satisfaction have significantly improved, which also corroborates the reduction in complaint volumes.
Attendees included Securities Commission Executive Chairman, Datuk Mohamad Faiz, and FMOS Chairman, Tan Sri Wong See Ren.
FMOS is a merged entity of the Ombudsman for Financial Services (OFS) and Securities Industry Dispute Resolution Center (SIDREC), serving as a centralized dispute resolution center for national financial consumers and investors.
Joint regulation by Bank Negara and the Securities Commission will assist FMOS in operating more efficiently with unified regulatory standards, while safeguarding the interests of consumers, investors, and the financial industry.
Joint regulation by Bank Negara and the Securities Commission will assist FMOS in operating more efficiently with unified regulatory standards, while safeguarding the interests of consumers, investors, and the financial industry.
FMOS, in conjunction with the functions of OFS and SIDREC, provides independent and impartial mediation and arbitration services as an alternative to the judicial system.
A simplified and consistent dispute resolution process will also offer consumers and investors faster and more transparent solutions.
Bank Negara's Governor, Datuk Seri Abdul Rasheed, stated in a press release that the establishment of FMOS reflects the continuous commitment of Bank Negara and the Securities Commission to enhance the efficiency and effectiveness of dispute resolution services.
"This initiative not only boosts consumer confidence but also strengthens the integrity and accountability capabilities of financial and capital market service providers, ultimately leading to a more robust and credible ecosystem."
Mohamad Faiz pointed out that FMOS, by providing a trustworthy one-stop platform, simplifies the dispute resolution process for financial consumers and investors, which is particularly important as the distinctions between the financial and capital markets become increasingly blurred.
"FMOS also promotes consistent standards and rulings, reinforcing confidence in the system."