Karachi, May 1, 2024 – Habib Bank Limited (HBL) has been identified as the bank with the highest number of customer complaints in Pakistan for the year 2023, according to the Annual Report released by Banking Mohtasib Pakistan.
The report shows that a staggering 5,279 complaints were lodged against Habib Bank, placing it at the forefront of customer dissatisfaction in the banking sector.
Coming in second, United Bank Limited (UBL) also faced significant grievances, with 3,828 complaints recorded. Meezan Bank Limited, known for being Pakistan’s first Sharia-compliant bank, was third with 2,502 customer complaints, indicating widespread issues across various banking institutions.
The data revealed by the Banking Mohtasib highlights that a total of 28,830 new complaints were received over the course of 2023, with an additional 7,607 complaints carried over from the previous year, bringing the total to 36,437. Of these, 21,886 were resolved amicably through reconciliation processes. Formal hearings led to findings or orders in 676 cases, while 2,931 complaints were dismissed as incomplete, frivolous, or outside the jurisdiction of the Banking Mohtasib.
Despite the considerable number of complaints, there was a noticeable decline in submissions through the Prime Minister’s Portal, a government-owned mobile application system, which saw a 41% decrease to 7,698 complaints. Conversely, direct complaints to the Banking Mohtasib’s office rose by 21% to 21,132. This increase underscores a growing preference among customers to engage directly with the oversight body.
The report also notes a slight decrease of 5% in the overall number of complaints received in 2023 compared to the previous year. However, the balance of unresolved complaints stood at 10,944 at the year’s end. The last 45 days of 2023 alone saw an influx of 2,625 complaints, suggesting a potential backlog that could impact the timely resolution of new cases in 2024.
The prominence of HBL at the top of this undesirable list is notable, given its status as one of Pakistan’s largest and oldest banks. The high number of complaints raises questions about the effectiveness of its customer service operations and its ability to handle customer issues efficiently. The types of complaints were not detailed in the Mohtasib’s report, but common issues in previous years included transaction errors, service delays, and disputes over fees and charges.
This increasing trend in direct complaints to the Banking Mohtasib, along with a decrease in complaints via the Prime Minister’s Portal, suggests a shift in how customers choose to report their grievances. It reflects a possible increase in awareness and trust in the Mohtasib’s ability to handle and resolve these issues effectively.
Banking experts suggest that the rising number of complaints could be indicative of a broader need for systemic changes within the banking sector, particularly in areas of customer service and digital banking operations. They also emphasize the importance of enhancing transparency and communication between banks and their customers to prevent such issues.
As we move into 2024, it will be crucial for banks, especially those like Habib Bank, United Bank, and Meezan Bank, to take proactive steps to address the causes of customer dissatisfaction and improve their service standards. The performance of these banks in responding to and resolving complaints will be closely monitored by both customers and regulatory authorities.
