The Bank of Namibia says there is a need to tackle high banking fees by ironing out market conduct issues to protect consumers.
The apex bank Governor Johannes !Gawaxab highlighted the importance of addressing issues related to discrimination against black clients and other minorities, framing them as market conduct problems rather than mere fees and charges issues.
In a recent parliamentary standing committee meeting on economics and public administration, !Gawaxab emphasised the need for customers to actively compare prices and products across different banks.
He stressed the importance of making the switching process more accessible and affordable for clients while encouraging the use of online banking for its cost-effectiveness.
“We need to improve the ability of bank customers to be able to compare products and prices and switch if they need to switch. What we need to do as regulators is to make the switching cost more comfortable, more affordable for our clients,” stated Governor !Gawaxab.
This comes as BoN has received a total of 68 complaints, with approximately 28% related to fees and charges.
Meanwhile, refunds for the year 2023 to date, amount to N$470 800, stemming from seven cases.
The Governor highlighted the ongoing transformation in the financial sector, addressing challenges related to fees and charges.
“Basic bank accounts and e-wallets have been introduced to enhance financial inclusion, and recent amendments in August 2023 grant the Minister of Finance the authority to regulate fees and charges,” he said.
!Gawaxab noted that the financial sector is actively working on crafting a new strategy, addressing issues like interoperability in the national payment system, and revising fees and charges for instant payments.
Similarly, the establishment of the Namibian Financial Cybersecurity Council is aimed at combating cybercrime in the financial sector.
!Gawaxab emphasised the critical importance of maintaining financial stability in the country.
He highlighted the potential threat posed by banks that are not financially stable and underscored the need to address this issue to safeguard the overall financial system.
!Gawaxab acknowledged the concerns about the stability of banks, stating that “banks that are not financially stable are a threat to our financial system. So we need to make sure we don’t get that. Otherwise, we’re going to lose that confidence and to get it back, just look around what’s happening, and we’ll see that”.
