Two big banks in Nigeria, Union Bank of Nigeria Plc and Zenith Bank Plc in 2021 refunded N16.8billion to customers, representing an increase of 136.8per cent from N7.11billion reported in 2020.
It means that the two banks between 2020 and 2021 have refunded a sum of N23.96 billion to customers on the back drop of numerous polices by Central Bank of Nigeria (CBN) to tackle menace of customer complaints in the banking industry.
Extracts from both banks 2021 financial result and accounts revealed that Union Bank of Nigeria reported N9.8billion refunds to customers, an increase of 190 per cent from N3.39billion reported in 2020, while Zenith bank refunded N7.01billion to customers in 2021 from N3.72billion reported in 2020.
According to the 2021 audited results, received complaints by Union Bank of Nigeria moved to 499,774 from 357,820 in 2020 and the bank was able to resolve 498,279 cases in 2021 from 351,392 complaints in 2020.
Union Bank of Nigeria’s customers claimed a sum of N28.69billion from the bank in 2021 from N10.15billion reported in 2020.
For Zenith Bank, it received complaints moved from 175,702 in 2020 to 307,537 in 2021, while total amount of received complaints by customers increased to N35.23billion in 2021 from N27,.94billion in 2020.
In addition, Zenith Bank’s disclosed in its 2021 financial year results that resolved complaints moved from 92,352 in 2020 to 225,122 in 2021 and amount resolved dropped to N40.7billion in 2021 from N145.72billioon in 2020.
Almost daily, customers have one complaint or the other regarding their banking experience. Greater number of consumer complaints about banking services relate to excess charges, Automatic Teller Machines (ATMs) issues, Point of Sale (PoS), Bank Verification Number (BVN), cheque-related issues, and fraud among others.
The coming of Covid-19 pandemic, which forced banks to review their operations, has also increased complaints about the associated delays in banks.
In their bid to comply with safety protocols put in place by the government, bank customers no longer enjoy the freedom of entering into banking halls as they used to, a development that has increased demand for online transactions.
However, the reality is that some banks’ ATM galleries are always packed full with people spending hours on end just to withdraw cash from the machines.
However, complaints about issues like dispense errors, controversial deductions are among issues customers are battling with.
It was in response to these complaints that the CBN created the Consumer Protection Department (CPD) in 2012 in furtherance of one of its core mandates of promoting a sound financial system. The CPD was established to develop and implement an effective consumer protection framework that would promote consumer confidence in the financial system.
The Department performs three primary functions: Complaints Management: This involves resolving consumer complaints against financial institutions under the purview of the CBN; Market Conduct & Development: This is to entrench fair and responsible market conduct amongst the financial institutions concerning their customers; Consumer Education/Financial Literacy: This is to promote and disseminate financial education and awareness amongst existing and prospective consumers for the enhancement of their economic well-being.
According to the apex bank major expected impact is the entrenchment of fair and responsible business conduct amongst financial service providers as well as the existence of a consultation and feedback mechanism to periodically determine the extent of consumer satisfaction.
Credit: WesternPost
