The Financial Ombudsman Service (FOS) has reported a 25 per cent reduction in costs due to decreasing case fees and the levy, leading to a £60 million saving for the industry.
According to a report provided to Pimfa, restructuring and digital enhancements, including a speciality model and a new data science team resulted in the cost reduction.
FOS is also working on other efforts such as an online site for CMCs and AI-powered case summarisation tools.
Additionally, median resolution time has decreased from 28 weeks in 2021/22 to 12 weeks in 2024/25 YTD, with 82 per cent of cases now handled in six months compared to 47 per cent earlier, and quality assurance has increased from 86 to 93 per cent.