Banks urged to digitise complaint handling

DAR ES SALAAM: BANKS need to digitise complaint handling to match the rapid shift of financial services to online platforms, an Absa Bank Tanzania executive has said.

Head of Application Management at Absa Bank Tanzania, Nicky Mlelwa said in Dar es Salaam yesterday that advances in automation, artificial intelligence, real-time payments and cloud computing have transformed banking, enabling customers to access financial services faster and more conveniently.

“Digital transformation has fundamentally changed the face of banking. What was once an industry defined by queues, paperwork and branch visits is now powered by speed, convenience and experiences that fit seamlessly into customers’ daily lives,” Mlelwa said.

He said customers can now open accounts, apply for loans, make payments, transfer money, save and invest through digital platforms, reducing reliance on traditional processes such as queues, paperwork and frequent branch visits.

However, he said the digital customer journey often breaks down when transactions fail or customers encounter problems, creating a gap between digital service delivery and customer support.

“Digital customers expect digital service, not just when everything works perfectly, but also when something goes wrong,” Mlelwa said.

He said customers who open accounts online, apply for loans through mobile applications or conduct digital transactions increasingly expect to report and resolve problems through the same channels.

While call centres and branches remain important, forcing customers to switch between different support channels can create frustration and undermine confidence in digital banking, he said.

Mlelwa urged banks to embed complaint management directly into their digital platforms, allowing customers to report problems, track cases and receive updates without leaving the digital environment.

He said effective systems should incorporate automated detection of anomalies, realtime notifications, self-service resolution options and swift escalation to human agents where necessary.

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“More importantly, it should provide customers with visibility and assurance that their concerns are being addressed,” he said.

Mr Mlelwa said digital transformation should therefore be measured beyond the number of services moved online or the speed at which transactions are completed.

He said unresolved complaints, failed transactions and delays can have a disproportionate impact on customer trust and loyalty, making complaint management a critical component of the digital banking experience.

“The path forward is clear: banks must embrace a truly end-to-end digital journey, one that does not end at service delivery but extends seamlessly into customer support,” Mlelwa said.

He said competition would increasingly be determined by the quality of customer experiences rather than product sophistication alone.

“Banks that succeed will be those that listen as well as they innovate, those that not only digitise services but also humanise the digital journey through responsiveness and empathy,” he said.