2023 US Consumer Financial Protection Bureau Banking Complaints Analysis

Executive Summary

This insights session offers a detailed exploration of how Ipiphany, an advanced AI text analytics platform, is applied to dissect and understand customer complaints within the realm of financial services. The data source is the Consumer Financial Protection Bureau. Touchpoint Group Head of Customer Intelligence, Tony Patrick provides insight into how this AI-driven approach can significantly enhance the understanding of customer feedback, thus enabling businesses to improve their operations and elevate customer satisfaction.


Comprehensive Data Analysis

The dataset comprises close to 40,000 records, encompassing a variety of factors such as the associated banks, states, product types, and zip codes. Initially, this data was broadly categorized into numerous topics. However, Patrick highlights the limitations of this approach in gaining meaningful insights into customer sentiments. In response, he introduces a more refined, customer-centric framework designed for more effective data analysis.


Innovative Framework for Customer Complaints

The newly adopted framework focuses on identifying the primary causes of customer complaints and those issues that customers most frequently highlight. This approach allows for a more streamlined and understandable representation of the data, making it easier to identify key trends and shifts in customer sentiment. Patrick uses this framework to dissect a notable increase in complaints against Bank of America, specifically related to pricing issues like overcharging.


Detailed Examination of Bank of America’s Complaint Trends

Utilizing Ipiphany, Patrick delves into a spike in complaints regarding Bank of America, particularly highlighting issues related to staff, pricing, and loyalty. The analysis reveals that 47.4% of the feedback pertained to staff-related issues and that there was a significant increase in complaints about pricing. Subtopic analysis indicates that overcharging was a major concern, with a noticeable rise in such complaints.


External Events Correlation

The increase in complaints is linked to an external incident where Bank of America was fined for overcharging. This event appears to have heightened customer awareness and concern regarding bank fees, as reflected in the rising volume of complaints. Ipiphany effectively summarizes specific issues, such as unarranged overdraft fees and inaccurate reporting to credit bureaus, offering a holistic view of the customer grievances.


Benchmarking and Comparative Analysis Using Ipiphany

Patrick employs Ipiphany to benchmark Bank of America against its competitors, revealing its position in terms of overcharging complaints. The tool also aids in analyzing aspects of customer loyalty, like churn threats, demonstrating variations in customer dissatisfaction levels across different banks.


Concluding Insights and Business Applications

The session concludes by emphasizing the practical benefits of using Ipiphany in analyzing customer complaint data. This AI-powered analysis allows financial institutions to identify and address key problem areas effectively. By doing so, they can reduce the volume of customer complaints, enhance the customer experience, and improve their overall business performance. The case of Bank of America underscores the potential of Ipiphany in converting complex customer feedback into actionable business insights.