Understanding Customers’ Complaints in the Banking Sector

Insights from Attribution Theory

Abstract

The global banking sector plays a crucial role in economic development, evolving from traditional institutions to tech-driven platforms across diverse regions. Customer service, especially in addressing complaints, is central to banks' competitiveness worldwide. Online complaint mechanisms, or e-complaints, allow customers to publicly express dissatisfaction. This study reviewed the dimensions of banking customer complaints, particularly those stemming from customer errors. This review revealed that customer complaints in banking reflect client dissatisfaction and serve as vital feedback for service improvement. With increasing digitalization, complaints often arise not only from banking errors but also from customer mistakes. Attribution Theory explains how individuals assign causes to events, attributing them to internal factors (like personal actions) or external ones (like others' actions or systems). In banking, this theory helps interpret customer complaints, especially those caused by user errors. Recognizing whether customers blame themselves or the bank influences how complaints should be handled. Distinguishing valid complaints from those caused by customer errors is crucial for improving service quality and customer satisfaction. Valid complaints highlight flaws in products or services, while errors often stem from misunderstandings or misuse. Addressing both types appropriately through empathy or customer education, can enhance trust and loyalty. Psychological factors like cognitive bias, overconfidence, stress, and emotions also influence customer behavior and errors.  Addressing these issues requires banks to enhance transparency, educate users, and adopt technology-driven solutions. Effective complaint management builds trust, ensures compliance, and fosters customer loyalty, turning negative experiences into opportunities for growth and innovation in a competitive financial landscape. Employee involvement further ensures these policies are effective, fostering a culture of excellence and trust. By improving communication, education, and empathy, banks can reduce error-based complaints, enhance customer understanding, and strengthen long-term satisfaction and loyalty.