The consumer advocacy organization, CUTS International, is urging financial technology companies to provide customers with a minimum of one month’s notice prior to implementing new service fees.
The organization asserts that abrupt changes in pricing could jeopardize public confidence in the digital finance sector.
This appeal comes in the wake of the Bank of Ghana’s decision to halt a proposed 0.75% fee by Mobile Money Fintech Limited on wallet-to-bank transactions, which was set to commence on June 1.
The suggested fee incited significant public outcry, with numerous users condemning the brief notice period and the absence of stakeholder consultation.
In an interview, Appiah Kusi Adomako, the West Africa Regional Director of CUTS International, remarked that fintech companies might need to modify their pricing from time to time to account for operational expenses and ensure their viability.
Nevertheless, he emphasized the necessity for consumers to be treated equitably and to receive adequate information prior to the introduction of any new fees.
“A notice period of one month is reasonable,” Mr. Adomako asserted.
He indicated that offering ample notice is not only a sound business practice but also essential for preserving customer trust in digital financial services.
“You may remember that last year, when Multichoice sought to raise their tariffs, they provided consumers with only one week’s notice, which resulted in considerable backlash. This approach is not a sound commercial strategy, as businesses should not inform their customers of a price increase with just one week’s notice,” he stated.
He further noted that businesses should prioritize customer relations, especially in competitive fields like financial technology, where trust is a crucial factor in customer acquisition and retention.
