Addis Ababa, Ethiopia
The National Bank of Ethiopia (NBE) has introduced an online platform and a dedicated hotline (7230) to assist customers in lodging complaints against financial institutions.
This initiative reflects NBE’s commitment to addressing common issues in the financial sector, such as aggressive sales practices, deceptive advertising, and inadequate transparency, as detailed in a statement on the bank’s website.
The newly launched platform enables customers to escalate complaints to NBE if financial institutions fail to resolve their issues internally within ten business days. This effort is part of a broader consumer protection framework under the Financial Consumer Protection and Education Directorate (FCPED), established following the enactment of the Financial Consumer Protection Directive in 2020.
Strengthening Consumer Protection
The directive requires all financial institutions to set up internal complaint-handling units capable of addressing grievances in multiple languages. These units must provide unique tracking numbers for complaints and resolve them within ten working days. Customers who find the resolution unsatisfactory or receive no response can escalate their concerns to NBE.
The FCPED’s online platform, developed internally by the central bank, is designed to cater to the needs of vulnerable consumers, including low-income individuals and micro, small, and medium enterprises (MSMEs). The platform aligns with NBE’s goals of promoting financial inclusion, trust, and systemic stability.
Partnerships and Goals
In addition to its internal development efforts, NBE has collaborated with the United Nations Capital Development Fund (UNCDF) to receive technical support and conduct educational campaigns. These initiatives focus on improving digital financial services and raising awareness of consumer rights.
“The platform aims to raise awareness of consumer rights, promote financial literacy, and hold financial institutions accountable, creating a more inclusive and trustworthy financial ecosystem,” said Endashaw Tesfaye, a digital financial services expert at UNCDF.
Addressing Challenges in Financial Access
Rapid financial inclusion has led to a significant increase in account ownership across developing economies, with the percentage of adults holding formal accounts rising from 42% in 2011 to 71% in 2021, according to World Bank data. While this growth is encouraging, it also brings challenges. Low-income and inexperienced consumers often face difficulties navigating financial services and are particularly vulnerable to fraud and exploitation.
The NBE’s platform aims to tackle these challenges by focusing on education, regulatory oversight, and effective complaint resolution, ensuring a safer and more accessible financial environment for all Ethiopians.
That is good stuff, and very useful, but what I can’t understad is that the likes of EEU, demands one to have telebirr to refill electric card at Gurd Shola branch, while the country’s mode mode of payment is through Banks or Cash. I would wish the concerned to clarify on that!!!