Baptism of fire for Bank Ombudsman

Banking Ombudsman Deborah Battell says her six years in the role have been humbling and hugely engaging. Photo / Mark Mitchell

In outgoing chief’s first year there were 1888 formal complaints - a 99 per cent rise.

Deborah Battell says if there is one thing she will take away from her time as the Banking Ombudsman it's that there will always be something new to learn when it comes to people and stressful situations.

Battell steps down at the end of this month after six years heading up the service which helps resolve disputes between banks and their customers.

"Our work involves people, often people under stress or who have strong feelings about what has happened. And this applies to both parties - banks and their customers.

"The variety of mistakes made by both customers and their banks, combined with the variety of human situations and responses you encounter, is interesting.

"It means you're always learning - especially about the challenges of communication and about us as people." Battell says the role has been humanising and humbling.

It has also been a busy time for the Ombudsman and her staff of 16.

Battell stepped into the job in July 2009 amid the fallout from the global financial crisis.

In that year her office's workload skyrocketed as it took on 1888 formal complaints - an increase of 99 per cent on the previous year.

Much of it was driven by the collapse of two ING investment funds sold via the ANZ bank. That year she helped to distribute $7 million in compensation to complainants.

"It was largely the middle classes that were affected and particularly people close to retirement."

While it was a busy time, Battell says it was also fantastic that so many people ended up getting their money back. Many others ended up losing everything through investing with failed finance companies.

"It gives a certain amount of faith in the banking system."

After getting through the GFC fall-out Battell has refocused on education and awareness of the scheme - both with the public and banks.

The scheme regularly releases guides and case information so others can learn from similar situations as well as gathering data on key problem areas so banks can work on improving those points of conflict.

"My aim has always been to reduce the number of disputes and empower customers to resolve things themselves."

Her efforts have spurred an increase in inquiries from the public - up 100 per cent over the last two years - particularly driven through its website.

At the same time complaint numbers - where people lodge an official complaint against their bank - have come down.

Disputes - where there has been a complete breakdown between the bank and its customer - have remained stable, she says.

Battell says that is a good thing as it suggests banks are continuing to remind people they can use the service if they are not happy with the outcome of any problem they have had with a customer.

She signed a five-year contract at the start of the role but stayed on an extra year to help work through some unfinished business after the office was severely disrupted in 2012 in the wake of a spate of earthquakes in Wellington.

"I wanted to stay on and create a pathway for the future."

The scheme has just been through an external review process and is about to implement some changes.

While its decisions have met international standards, Battell says there are clear opportunities to ensure the scheme is more flexible and efficient.

"One of the changes we are looking at is enabling greater delegation of decision making."

What she calls going from me to we. At the moment either she or the deputy makes the final call on cases.

The change would enable delegation beyond a person with the Ombudsman title.

But she is quick to reassure there would be checks and balances to ensure the decision is made with senior authority.

Battell believes it will enable greater continuity and give the public confidence in the scheme, not just the person with the title.

Her deputy Nicola Sladden takes over the top job from August.

Battell plans to take a month off before heading back into consulting and governance work. "I'm just wanting to diversify a bit."

She says her time as the Ombudsman has been hugely engaging and she has taken real pleasure from helping individuals and helping to change the way banking is done.