The CFPB issued its second monthly complaint report inlate November, and it shows that more consumers are takingadvantage of the organization's complaint process. As of Nov. 1,2015, the CFPB has handled approximately 749,400 complaints,including approximately 24,300 complaints in October 2015 – more inone month than they saw in all of 2014.

In March of this year, the CFPB added a new feature to theconsumer complaint database: Namely, consumers now have the optionto publish a so-called narrative regarding the complaint. Thenarrative elaborates on the consumer's allegations against thecompany. Previously, the database only identified the financialproduct complained about, name of the company and a categoryidentifying the topic of the complaint.

To all of the above I say, great! Stand-outs in the financialspace (read: Credit unions) should be thrilled too. More dataprovides more knowledge, and allows credit unions to reallyseparate themselves as institutions that are doing it right fromthose who aren't.

The fact that the financial services industry doesn't havecomplaint transparency is a common grievance. The publicavailability of complaint narratives will provide greatertransparency into complaints across all financial institutions.Access to complaint narratives is available not only for thefinancial institution but also for peer firms. This information canbe used to gain valuable insights into member and customer painpoints across the industry, gather competitive intelligence on peerorganizations, anticipate emerging problem areas and learn frompeer experience.

Credit unions must make sure they appropriately resolve acomplaint aimed directly at them. And, they must communicate withthe member to confirm he or she is satisfied with the resolution.It's not enough to “think” the member is happy. You need to ask.This keeps your members from using the CFPB complaint site and/ortaking it to social media if you can solve it on the frontside.

While the trigger of a complaint is an expression ofdissatisfaction, receiving a complaint also represents a positiveopportunity to learn, improve processes, and enhance the memberexperience both through effective communication and resolution forthe individual member, and through enhancements that fix the issuesthat might create similar situations for other members.

The CFPB's press release announcing the new policy noted: “Thenarratives will provide context to complaints, spotlightingspecific trends, and help consumers make informed decisions. Thenarrative may encourage companies to improve the overall quality oftheir products and services, and more vigorously compete with goodcustomer service.”

Pay attention to the monthly complaint reports. Review thecomplaint categories. Read the narratives. Understand consumers'pain points. See trends. Make your processes better. Create abetter member experience. Transparency equals knowledge, whichgives you the insight to make your organization better.

If you haven't done so already, get a firm complaint managementprocess in place. If you embed a comprehensive complaint managementprogram into your organizational culture, you can achievelong-lasting benefits, as well as avoid costly anddamaging consequences.

Failing to act strategically in regard to complaints managementcan mean missing product and service enhancement opportunities,negative impacts to revenue from regulatory fines and damage toyour reputation.

Welcome the new transparency. Welcome the opportunity.

John-Ashley Paul is CEO of Cubus Solutions. He can bereached at 925-344-5302 [email protected].