CBN Issues Exposure Draft On Digital Financial Services Awareness

The Central Bank of Nigeria (CBN) has released an exposure draft on Digital Financial Services Awareness (DFS) guidelines which is expected to address gaps in consumer knowledge and practices with Digital financial Services (DFS).

According to a circular released by the Consumer Protection Department of the CBN, the guidelines apply to Deposit Money Banks (DMBs), Merchant banks, Other Financial Institutions (OFIs), Payment Service Banks (PSBs) , and other payment service institutions as licensed by the regulator.

As part of its objective, the guideline is to set “Digital Financial Literacy (DFL) standards for Digital Financial Services Providers (DFSP).”

The guideline stipulates that DFS providers, among other requirements, are expected to: “Provide information that will enable consumers differentiate DFS products from conventional banking products and services.”

They are also to 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 and provide information on product usage and how to obtain support services when the need arises.

In addition, DFS providers are expected to: “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 and submit developed educational materials to the Director of Consumer Protection, CBN for review.”