Joint Initiative by CBN and NCC to Enhance Banking Complaint Resolution Through Universal Short Code

Joint Initiative by CBN and NCC to Enhance Banking Complaint Resolution Through Universal Short Code

The Central Bank of Nigeria (CBN), in partnership with the Nigerian Communications Commission (NCC), has announced plans to introduce a universal short code for banking complaints.

This collaborative effort aims to create a more accessible and efficient complaint resolution mechanism for all bank customers, irrespective of their internet connectivity.

This forthcoming system is intended to promote financial inclusion by extending complaint services to individuals who may not have access to smartphones or consistent internet service. By dialing a simple short code, customers will be able to communicate with their banks and seek redress for grievances, thereby reducing the necessity of physical branch visits.

Dr. Aisha Isa-Olatinwo, the CBN’s Director of Consumer Protection and Financial Inclusion, highlighted the existing digital divide that hinders many customers from resolving banking issues.

She stated that the universal short code will foster inclusivity by providing all customers with equitable access to complaint resolution avenues.

The CBN has reportedly strengthened its consumer complaint management framework and deepened its collaboration with deposit money banks, who are recognized as frontline protectors of the financial system.

The apex bank reports an approximate 94% resolution rate for consumer complaints within one month of their submission, indicating enhanced efficiency and accountability.

Recent findings from a poll conducted by Enhancing Financial Inclusion and Advancement (EFInA) reveal significant consumer pain points. The survey indicated that 61% of respondents encountered failed transactions over the past year, while 66% were aware of the procedures for lodging and escalating complaints.

Regarding transaction reversals, 26% of respondents received refunds within 24 hours, with 54% experiencing delays of 24 to 48 hours. The poll also identified issues such as fraud (6%), hidden charges (14%), and poor customer service (15%).

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Consumer rights advocates have called for more robust protection measures. Mrs. Sola Salako-Ajulo, President of the Consumer Advocacy Foundation of Nigeria (CAFON), expressed concerns that consumers often perceive regulators as favoring service providers.

She proposed the implementation of fraud insurance to facilitate prompt refunds in disputed cases, temporarily shifting the burden of proof from consumers during investigations.

Mr. Adeyemi Salisu, representing the Committee of e-Business Industry Heads (CeBIH), clarified procedures for failed transactions, emphasizing that customers should not be redirected to merchants.

He asserted that the responsibility for resolving such disputes lies with the acquiring and issuing banks, who must collaborate to ensure timely and satisfactory outcomes for customers.