Customer complaints rising fast, bankers lacking empathy, says RBI DG

Reserve Bank Deputy Governor Swaminathan J has rued a "lack of empathy" among bankers, even in the face of rising number of customer complaints around serious aspects like fraud.

Speaking at an event of RBI-promoted NIBM (National Institute of Bank Management) on July 12, Swaminathan said there is "increasing automation but decreasing ownership", and customers have to contend with template emails and helplines loop back "endlessly".

He made it clear that addressing these issues will be essential if bankers were to sustain people's trust in the system.

The Reserve Bank's website published the speech on Tuesday.

"The number of customer complaints -- especially through digital channels -- has risen significantly in recent years. From social engineering frauds to poor grievance redressal, the loss and frustration is real. Often, the problem is not the product or service, but, as I see it, the real issue is a lack of empathy," the commercial banker-turned-regulator said in his valedictory address to the students.

Nowadays, KYC (know your customer) is often reduced to a "periodic ritual", he said, exhorting bankers to find a way to bring back that personal awareness and responsibility even in a digital context.

Enlisting instances like senior citizen's struggles with ATM PIN, a rural area borrower's challenges to repay a loan online or the worries of a small business owner over UPI payments, Swaminathan said these are not mere service requests, but opportunities to earn trust by giving time and patience, and showing professionalism.

"Technology will enable the transaction. But only you can build the relationship and only you can earn the customer's trust for your institution," he said, stressing that this is what will distinguish a banker from an app.

The DG said a banker has to act quickly, endure uncertainty, recover from setbacks, and stay focused over the long run.

"You will face moments of rapid change -- crises, deadlines, audits, policy shifts -- but you will also need the discipline and stamina to navigate slow, complex processes that unfold over months or years," he told the students beginning a two-year post graduation course in banking.

Empathy, curiosity, and integrity will define success for the students over a long term, he said.

"What will truly shape you as a banker is your ability to blend knowledge with judgment, law with convention, and theory with practice," he said.

Things will not go as planned, but the ability to embrace the unfamiliar and turn unexpected situations into learning experiences will set a student apart, he said, asking them to stay alert and course-correct early.

Banking today is more complex than ever, he said, adding that there are also new vulnerabilities like cyber threats, phishing, synthetic identities, deepfakes, and third-party risks.