September 26, 2022

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CBN develops guidelines to expand financial services

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.

It disclosed this in a report titled ‘Digital financial services awareness guidelines’ on Friday.

CBN stated that “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.”

It stated that the provisions of the guidelines would apply to institutions providing DFS including the Deposit Money banks, merchant banks, Other Financial Institutions, Payment Service Banks, and other payment service institutions as licensed by the CBN.

The objectives of the guidelines include to set “Digital financial literacy standards for digital financial services providers; to align product development, promotion, and consumer awareness to DFS among 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; and to provide standard for the promotion of DFL.”

According to the CBN, the DFSs are required to promote DFS awareness and education; provide information that would enable consumers differentiate DFS products from conventional banking products and services; and ensure ease of access to information on all product offerings to enable consumers make informed decisions.

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Other are to 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.

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