Increase Focus on Retail Customers, Alade Tells Banks

The Deputy Governor (Economic Policy) of the Central Bank of Nigeria (CBN), Dr. Sarah Alade has stressed the need for banks to pay more attention to their retail customers.

The central bank deputy governor who made this remark at the 2014 bank customers’ summit organised by the Bank Customers Association of Nigeria (BCAN) in Lagos, noted that since the global financial crisis which exposed the inadequacies of prudential regulation and the need for dedicated consumer-focused regulations, banks globally are rethinking ways of protecting their customers and other stakeholders they serve.

Furthermore, she stressed the need for the financial services industry to focus on the critical role they play in the economy and demonstrate a more positive stand on social and consumer-driven issues.

Alade pointed out that there is the realisation that excessive risk taking behaviors of some banks was affecting not only the profitability of their institution, but also the customers they serve.

“There is a renewed focus in strengthening the safety and stability of financial institution, to avoid the repeat of the recent financial crisis. Central Bank of Nigeria also joined in this effort and has implemented a lot reforms to improve bank customers’ experience in the banking sector, increase confidence and to make banking more customer friendly and broad-based.

“Financial services marketplace has changed profoundly in recent decades. Only a generation ago, most customers in this country do not have bank accounts and even those that do, have very little else to do with the banking sector.

“The banks were just being used for simple services like opening of accounts, settling checks and withdrawals. However, the face of banking in Nigeria has changed and banks are now being used for a variety of services,” she added.

Alade also said consumer awareness plays a key role in customer decision making, noting that by increasing a potential or current customer's knowledge about a product, service or business, a healthy economic environment evolve where they are informed and protected and businesses are accountable for their actions.

However, the Head, Lagos office, Consumer Protection Council (CPC), Tam Tamunokonbia listed common complaints by bank customers to include ATM fraud, Illegal bank charges as against the minimum re-discount rate, non-disclosure of terms and conditions by banks and financial service providers, mobile payment systems – online trading and improper cheque verification.

The CPC official therefore advised banks to respect the customer’s rights to disclosure, provide written terms and conditions in simple language and legible words and always make their charges and fees known to customers before an account opening.