Clearbank, the UK’s first clearing bank in more than 250 years, has made headlines in recent years, particularly for its innovative use of technology and API-driven banking. However, like any other financial institution, Clearbank has also faced its fair share of customer complaints, ranging from slow account opening to fee disputes.
In this article, we aim to provide a comprehensive overview of Clearbank complaints, their causes, and how the bank has responded to them.
Account Opening Delays
One of the most common complaints raised by Clearbank customers is the delay in opening accounts. Unlike traditional banks, Clearbank does not have any physical branches, and all account opening processes are conducted online. While this offers greater convenience for customers, it can also lead to delays in account opening due to the bank’s stringent identity verification and fraud prevention measures.
Clearbank has acknowledged this issue and has taken steps to address it. In 2019, the bank launched an improved onboarding system that is faster and more intuitive, reducing the average account-opening time to around 48 hours. It has also implemented a chatbot service to answer customer queries in real-time and provide support throughout the onboarding process.
Service Outages
Another common complaint raised by Clearbank customers is the disruption of services due to technical issues, which can lead to inconvenience and lost business opportunities. Clearbank is a technology-driven bank, and its services depend heavily on robust IT infrastructure. However, like any other technology-based system, it is susceptible to glitches and downtime.
In 2020, Clearbank faced a significant service outage that lasted for several hours, affecting customers’ ability to access their accounts and carry out transactions. The bank quickly acknowledged the issue and communicated regularly with affected customers throughout the outage. Since then, Clearbank has invested heavily in strengthening its IT infrastructure, employing a DevOps team to ensure that service outages are minimized in the future.
Fee Disputes
Like many financial institutions, Clearbank has faced several complaints from customers disputing fees and charges applied to their accounts. Complaints range from unexpected charges to unclear statements and even retrospective charging.
To address these issues, Clearbank has introduced several measures to enhance transparency and customer satisfaction. In 2019, the bank launched a new online dashboard that allows customers to view their balance, transactions, and fees in real-time. Clearbank has also committed to providing clearer and more transparent information on account fees and charges.
Customer Support
Clearbank has faced criticism for the quality and responsiveness of its customer support, particularly during periods of high demand. Some customers report experiencing long wait times when trying to reach the bank’s support team, with some even raising concerns about the language proficiency of some support staff.
Clearbank has acknowledged the importance of providing high-quality customer support and has introduced additional measures to enhance support services. For example, the bank has implemented a live chat function that allows customers to receive support quickly and efficiently. Clearbank has also increased its customer support team’s size to cope with periods of high demand more effectively.
Regulatory Compliance
As a financial institution, Clearbank is subject to a range of regulatory requirements and compliance obligations, and any failure to comply with these can result in complaints from regulators and customers alike. In 2019, the bank was found to have breached money laundering regulations by failing to conduct adequate due diligence on some of its clients, resulting in a £1.6m fine from the Financial Conduct Authority (FCA).
Clearbank has acknowledged the importance of compliance and has introduced measures to ensure that it meets regulatory requirements. The bank has appointed a dedicated compliance team, led by a Chief Compliance Officer who reports directly to the Board of Directors. Clearbank’s compliance processes are regularly reviewed and updated to remain in line with regulatory requirements.
Conclusion
Clearbank has been a game-changer in the UK banking industry, offering innovative and technology-driven banking services. However, like any other financial institution, Clearbank has also faced its fair share of customer complaints. The bank has responded to these complaints by taking real and tangible steps to enhance its services, improve transparency and customer support, and ensure regulatory compliance. By doing so, Clearbank will undoubtedly enhance its reputation as a customer-focused bank that values transparency, innovation, and compliance.