BoT complaint system cuts financial disputes

DAR ES SALAAM: FINANCIAL service complaints reaching the Bank of Tanzania (BoT) have fallen sharply after the central bank introduced a digital screening system that requires customers to first seek redress from their financial service providers before escalating disputes to the regulator.

The new system has streamlined the complaints process by filtering out cases that have not exhausted internal dispute resolution mechanisms, allowing the central bank to focus on complaints that require regulatory intervention.

Financial Analyst from the Department of Financial Consumer Protection at the BoT, Mr Fanuel Kijoji said the central bank received more than 1,500 complaints in 2024, with the majority found to be ineligible because customers had bypassed their banks, microfinance institutions or mobile money service providers and reported directly to the regulator.

“The decline follows the introduction of a system that filters and channels complaints before they are escalated to the central bank,” Kijoji said.

Under the revised process, customers are required to first lodge complaints with their financial service providers. Only disputes that remain unresolved after internal procedures have been completed can be referred to the Bank of Tanzania.

“The central bank supervises banks, microfinance institutions and payment systems, including mobile money platforms, and intervenes only after financial service providers fail to resolve disputes with their customers,” he said.

Mr Kijoji said the approach has improved the efficiency of complaint handling by ensuring that only cases meeting regulatory requirements are submitted to the central bank for review.

He noted that loan-related disputes account for a significant proportion of complaints handled by the regulator, reflecting growing demand for credit as financial services continue to expand across the country.

The reforms also support broader efforts to strengthen consumer confidence in Tanzania’s financial system by encouraging institutions to resolve disputes promptly and improve customer service before regulatory intervention becomes necessary.

Beyond handling complaints, Kijoji said the Bank of Tanzania’s Financial Inclusion Directorate is mandated to expand access to formal financial services while strengthening consumer protection and financial literacy.

Its responsibilities cover the banking, insurance, capital markets, microfinance and digital payments sectors, with public education programmes designed to help consumers make informed financial decisions and understand their rights and responsibilities.

He urged consumers to familiarise themselves with the terms and conditions of financial products before signing contracts, keep records of their transactions and use internal complaint channels provided by financial institutions whenever disputes arise.

“The central bank should only be approached after those channels have been exhausted,” Kijoji said.

The digital complaints platform forms part of the Bank of Tanzania’s wider efforts to modernise financial sector oversight, improve regulatory efficiency and support the continued expansion of inclusive financial services as the country accelerates digitalisation of its financial system.