NFO is bridging the gap for vulnerable consumers

PROVIDING timely and appropriate assistance to consumers, particularly those residing in rural areas or who are economically vulnerable, can significantly curtail complaints relating to financial products and services.

- DIEKETSENG MALEKE

This is according to Reana Steyn, chief executive officer and head ombud of the National Financial Ombud Scheme South Africa (NFO), which commenced operations on 1 March 2024 following the consolidation of the Non-life and Life Insurance, Banking, and Credit Ombuds.

Between March 1 and December 31, 2024, the NFO managed 35,855 complaints and facilitated recoveries totaling R328,550,212.58 on behalf of aggrieved financial customers.

"It is significant that small towns and rural/farm areas accounted for 32,10% of all complaints," says Steyn.

Haroon Laher, chairperson of the NFO, has urged financial service providers to be cognisant of the widening gap between different consumer demographics, including those in urban and rural locations, as well as between financially sophisticated and vulnerable individuals. Laher says: "There are instances that point to information not being clear, thus causing confusion, and not being provided upfront," highlighting how disparities in financial literacy and access to clear communication can lead to consumer dissatisfaction.

He further underscores the value of identifying patterns in complaints in order to prevent repetition and improve service delivery.

"The lessons learnt from the root causes of complaints can avoid repetitive grievances. The NFO will work towards ensuring inclusivity for financial services and products and, thereby, help to bridge the gap between the urban and rural, the sophisticated and vulnerable and disadvantaged," Laher says.