The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have hinted of their plan to introduce a new universal short code that would address bank customers’ complaints associated with banking transactions in the country.
This collaborative initiative is designed to create a more accessible and efficient complaint resolution mechanism for all bank customers, irrespective of their internet connectivity, and promote financial inclusion by extending complaint services to individuals who may not have access to smartphones or consistent internet service, among other benefits.
The two regulatory institutions disclosed that by dialing a simple short code, customers would be able to communicate with their banks and seek redress for grievances, thereby reducing the necessity of physical branch visits.
Speaking on the new initiative, CBN’s Director, Consumer Protection and Financial Inclusion, Dr. Aisha Isa-Olatinwo, explained that there were existing digital divide that had been hindering many customers from resolving banking hitches and assured that the proposed universal short code would foster inclusivity by providing all customers with equitable access to complaint resolution avenues.
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Already, as part of efforts to achieve the objectives of the universal code, the apex bank has strengthened its consumer complaint management framework and deepened its collaboration with deposit money banks (DMBs) being the frontline players in the financial system.
According to the apex bank, currently approximately 94% resolution rate are being recorded in consumer complaints within one month of their submission, indicating enhanced efficiency and accountability.
Meanwhile, recent findings from a poll conducted by Enhancing Financial Inclusion and Advancement (EFInA) indicated that 61% of respondents experienced failed transactions over the past year, while 66% were aware of the procedures for lodging and escalating complaints.
The survey findings further reflected that on transaction reversals, 26% of respondents received refunds within 24 hours, while 54% experienced delays of 24 to 48 hours.
The poll also identified issues such as fraud (6%), hidden charges (14per cent), and poor customer service (15per cent) as some of the customers’ challenges.
Speaking at a forum convened for the purposes of the CBN-NCC collaboration to address the banking transaction challenges, President of the Consumer Advocacy Foundation of Nigeria (CAFON), a civil advocacy committed to consumer protection, Mrs. Sola Salako-Ajulo, said many consumers perceived regulators as being more aligned with service providers, thus leaving customers at the receiving end during dispute resolution with the later.
She canvassed the need for the introduction of fraud insurance to enable timely refunds in disputed transaction cases, thus shifting burden of proof temporarily away from consumers while investigations are ongoing in reported fraud and other failed transaction cases .
In his remarks, the representative of the Committee of e-Business Industry Heads (CeBIH), Mr. Adeyemi Salisu, while clarifying procedures on failed transactions, stressed that customers should not be redirected to merchants.
According to him, the responsibility for resolving such disputes rests with the acquiring and issuing banks, which must work directly to ensure prompt and satisfactory resolution for affected customers.
Banking and digital payment experts believe that the proposed universal short code will mark a major step towards deepening financial inclusion, enhancing trust in the Nigerian banking system and ensuring that all customers are empowered to exercise their consumer rights.
