Build public confidence through customer complaint resolution - BoG to banks

The Second Deputy Governor of the Bank of Ghana (BoG), Matilda Asante-Asiedu, has urged banks and other regulated financial institutions to strengthen their internal complaint resolution mechanisms to rebuild public confidence and promote consumer protection.

She said the growing trend of customers escalating grievances to the central bank, instead of resolving them at the institutional level, was a sign of erosion of trust in commercial banks’ ability to handle complaints effectively.

“While protecting the three channels of complaint redress — the institution, the Bank of Ghana, and the law courts — we urge you, the Consumer Reporting Officers, to strengthen your commitment to the vital roles you play in ensuring effective complaint redress at the institutional level,” she stated.

Mrs Asante-Asiedu was speaking at the Consumer Reporting Officers Stakeholder Engagement held in Accra.

The programme, on the theme: “Excellence in Service, Innovation in Delivery, Security in Practice,” brought together consumer protection officers, compliance managers and representatives of banks to discuss how to enhance service delivery and safeguard consumer interests.

Increasing complaints

The Second Deputy Governor disclosed that the number of complaints escalated to the BoG rose from 695 in 2023 to 743 in 2024 — a 6.9 per cent increase — with many of them being issues that could have been addressed at the bank level.

“This trend appears to stem from a lack of confidence in the resolution capabilities of the commercial banks, which ought to serve as the initial point of contact for such matters,” she said.

Mrs Asante-Asiedu further revealed that the central bank was reviewing its Consumer Recourse Mechanism Guidelines to address emerging gaps in the system.

One major limitation, she explained, was the absence of explicit provisions for customer compensation under the current legal and regulatory framework. 

“This narrows the scope of redress available, even in instances where such remedies may be justified,” she said, adding that industry stakeholders would be consulted before finalising the revised framework.

Corporate governance, technology

Beyond consumer complaints, Mrs Asante-Asiedu highlighted persistent concerns over weak corporate governance, limited transparency, and inadequate disclosure of product terms within some financial institutions.

She called for a multi-pronged strategy that strengthened governance, transparency and accountability to protect consumers and sustain confidence in the banking system.

Turning to digital transformation in the sector, she cautioned that while technology had improved accessibility and efficiency, it had also heightened risks of fraud and data breaches.

The BoG’s 2024 Fraud Report, she revealed, recorded a five per cent increase in reported cases and a 13 per cent rise in financial losses, amounting to GH¢99 million, with staff involvement escalating by 33 per cent.

“Through vigilance, adherence to ethical standards and proactive enforcement of internal controls, you can help safeguard public trust and strengthen the financial sector,” she advised Consumer Reporting and Compliance Officers.

Mrs Asante-Asiedu reaffirmed the bank’s commitment to promoting responsible innovation through initiatives such as its Regulatory Sandbox and Cyber and Information Security Directive.

“The strength of our banking system lies not only in its profitability but in its credibility — how fairly and effectively it treats the people who depend on it,” she said.

She called on all stakeholders, including regulators, banks and consumers, to work together to uphold excellence, innovation and security in financial services delivery.