BREAKING: CBN And NCC Introduce Unified Short Code For Banking Complaints
The Central Bank of Nigeria (CBN) has said it is partnering with the Nigerian Communications Commission (NCC) to create a unified short code that will allow bank customers to reach their financial institutions at any time, even without internet access.
The Director, Consumer Protection and Financial Inclusion Department at the CBN, Dr. Aisha Isa-Olatinwo, made this known during a virtual Consumer Protection Town Hall meeting titled “Ask the Regulator”, organised by Enhancing Financial Inclusion and Advancement (EFInA).
She said the joint initiative became necessary as consumers struggle to know where to send complaints in a financial system that now cuts across banking and telecoms.
According to her, “Given the rapid transformation of the Nigerian financial landscape, which now cuts across both telecom and banking sectors, consumers often struggle to know where to lodge complaints. Our major concern is vulnerable consumers who do not have internet access or who use feature phones and are forced to physically visit their financial institutions when faced with challenges.
“We are working with the NCC to develop an industry short code that will enable consumers to reach their financial institutions anytime, with or without internet access.
“We have also streamlined our processes and partnered with banks so we are seen as industry protectors. Banks often claim we side with consumers 100 percent of the time, but our objective is safeguarding financial system stability.
“I would also like to announce that we have achieved 94 percent month-on-month timely resolution of consumer issues.”
A poll by EFInA showed that 66 percent of respondents know how to lodge or escalate complaints, while 4 percent do not. The survey also indicated that 26 percent experienced transaction reversals within 24 hours, while 54 percent waited between 24 and 48 hours.
It further revealed that 61 percent had failed transactions in the last year, 6 percent reported fraud incidents, 14 percent noted hidden charges, and 15 percent complained about poor customer service.
The President of the Consumer Advocacy Foundation of Nigeria (CAFON), Mrs. Sola Salako-Ajulo, said many Nigerians still feel unprotected and believe regulators favour service providers.
She called for fraud insurance to reduce the burden on customers during disputes.
“From our perspective, the onus of proving the legitimacy of a reversal in a fraud case should not be on the consumer. What is missing in our system, unlike more developed economies is fraud insurance. With such insurance, a bank can immediately reverse reported fraud, refund the consumer, and then complete its investigation. If it turns out not to be fraud, the consumer can then be held accountable,” she said.
Speaking on customer-merchant disputes, Chairman of the Committee of e-Business Industry Heads (CeBIH), Mr. Ajibade Laolu-Adewale, represented by the Provost, CeBIH Academy and Group Head, eBusiness, Sterling Bank, Mr. Adeyemi Salisu, noted that customers should not be sent back to merchants after failed transactions.
“The process is clear: the dispute is between the acquiring bank and the issuing bank. Bank staff must never send customers back to the merchant. Regulation already states that for every dispute, the two banks must engage and resolve it so the consumer can be satisfied,” he said.
