Source: CBN
- Introductory statement
The Central Bank of Nigeria has developed the Digital Financial Services Awareness Guidelines to address gaps in consumer knowledge and practices with Digital financial Services (DFS). DFS have the potential to expand access to financial services for the Nigerian population and spur innovation in the financial services industry. The Guidelines provides for a set of principles and expectations for financial service providers to integrate in the provision of DFS to ensure consumer understanding, good treatment, and positive outcomes.
1.1 Scope
The provisions of this Guidelines shall apply to institutions providing DFS including the following:
Deposit Money banks
Merchant banks.
Other Financial Institutions.
Payment Service Banks, and
Other Payment Service Institutions as licensed by the CBN.
1.2. Objectives
The objectives of the Guidelines include the following:
To set Digital Financial Literacy (DFL) standards for Digital Financial Services Providers (DFSP).
To align product development, promotion, and consumer awareness to DFS amongst DFSP
To enhance transparency and proper disclosure on DFS.
To provide for the development of Financial Literacy and Consumer Education materials on DFS.
To ensure evidence driven DFL approach.
Integrate DFL in existing financial education programmes.
To drive targeted DFL approach to the underserved population.
To provide standard for the promotion of DFL.
- DFS Awareness Principles
Digital Financial Services providers are required to comply with the following principles
2.1 Promote DFS Awareness and Education
DFS providers shall:
Provide information that will enable consumers differentiate DFS products from conventional banking products and services
Ensure ease of access to information on all product offerings to enable consumers make informed decisions.
Provide information on products in simple english and local languages.
Conduct outreach to underserved populations regarding DFS options available to them.
Provide information on product usage and how to obtain support services when the need arises.
Develop and deliver educational materials to prospective and existing customers through basic channels such as Short Message Service (SMS), Unstructured Supplementary Service Data (USSD) and at agent locations, in addition to app, web and social media platforms. vii. Submit developed educational materials to the Director of Consumer Protection, CBN for review.
2.2 Disclosure, Transparency, and User Privacy upon Service Adoption.
DFS providers shall:
Disclose all terms, conditions, fees, and other associated charges on product offerings prior to enrollment.
Ensure integration of data privacy and protection standards into internal policies.
Conduct evidence -based awareness campaigns to sensitize consumers on how to protect their assets and sensitive details.
Develop default settings on DFS which are by nature “opt-out” not “opt-in” of data sharing with third parties, and clear and simple “opt-in” language for sharing of data.
Ensure privacy to data collection and sharing during product enrollment.
Ensure easy opt-out process for data sharing
2.3 Product Usability and Market Testing
DFS providers shall:
Ensure that products deployed are suitable for the target customers.
Test product usability with users and modify as necessary to reduce transaction errors.
Provide consumers with reliable and easily accessible channels to enable them obtain support services
2.4. Fraud Prevention and Risk Management
DFS providers shall:
Provide fraud prevention messages and tips for consumers using both audio and virtual modes of communication in local languages.
Monitor fraud reports to identify emerging fraud issues and sensitize their customers on how they can protect their assets.
2.5 Awareness and Access to Redress and Complaints Handling
DFS providers shall:
Disclose information on consumer complaints channels, resolutions, and Service Level Agreements (SLAs) in product enrollment materials.
Ensure periodic training of agents and complaints handling staff.
2.6 Monitoring and Evaluation
DFS providers shall:
Put in place strategies to assess their policies on raising consumer awareness and product usage.
Develop indicators and performance measures to assess changes in awareness and usage.
Forward their strategies and performance measures to the Director of Consumer Protection, CBN bi-annually for review.
Forward monthly returns on consumer awareness programs/initiatives conducted to the Director, Consumer Protection, CBN.
Click here to read full PDF copy of Exposure Draft on the Digital Financial Services Awareness Guidelines
