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ANNUAL REPORt2017/2018
...free, fair, independent and accessible dispute resolution service.
BOTSWANA BANKING OMBUDSMAN
ANNUAL REPORt2017/2018
TABLE OF CONTENTSExecutive Summary 1Introduction 1Need for Office of the Banking Ombudsman 1Trust and Confidence in the Banking Ombudsman 1Banking Ombudsman Office – Vision, Mission, Values and Objectives 2Banking Ombudsman Report 5Fundamentals of Banking Ombudsman 7The G20 Principles of Financial Consumer Protection 9Service Standards 10Guidelines on Non-Financial Loss Caused to a Customer 11Case Statistics 12Number of Cases Opened in 2017/2018 12Complaints Received Per Bank 13Total Assets Per Bank 15How Did Complainants Know About Our Office? 16Manner/Process in Which Files Were Closed 17Opening and Closure of Files 18Evaluation of Closures 18Analysis of How Decisions Were Made 19Case Reviews and Summaries 19External Engagements 26Marketing and Community Outreach 27Financial Inclusion and Education Strategy 28Code of Banking Practice 31Glossary of Terms 32
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IntroductionExecutive SummaryThe 2017/2018 Annual Report shares important insights into an ombudsman scheme as seen through the lens of the World Bank Report 2012- Resolving Disputes Between Consumers and Financial Businesses, the G20 Principles of Financial Consumer Protection and the recent International Network of Financial Ombudsman (INFO) - Guide To Setting Up A Financial Services Ombudsman Scheme (www.networkfso.org/how-to-guides.html).
The INFO Network’s practical “Guide to setting
important resource which is helpful for new
an ombudsman model in facilitating external and independent dispute resolution body (www.networkfso.org). and independence of any organization seems to be the foundation of its sustainability. The
and national economy.
The 2017/2018 Banking Ombudsman Report is a glimpse of the activities which took place in 2017 and 2018, the developments within the banking services and the external dispute resolution spheres. Highlighting the importance
integrity and credibility of the ombudsman hinges on the perception people have or might have when they receive a service.
Even though 135 cases were received, delays were occasioned in the submission of reports, jurisdictional constraints, lack of cooperation, with these subjected to our dispute resolution processes of investigation, mediation, provisional recommendation and determination with an improved turnaround time.
Financial inclusion and Education remain our number one strategy and priority in 2019 and beyond.
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unbiased.
Our Mission
Our Vision
Our Values
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Our Objectives
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Banking Ombudsman’s Report
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Banking Ombudsman:
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Fundamentals of the Banking Ombudsman
IndependencePrinciple:
Purpose:
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Governance Principle:
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Funding Principle:
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Coverage and procedurePrinciple:
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ombudsman.
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Accessibility Principle:
Purpose:
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TransparencyPrinciple:
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Accountability Principle:
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The G 20 Principles of Financial Consumer Protection
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Service StandardsPenalties on Delays to Provide Report and Information Following
BBO Terms of Reference,
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15 working days (
10 days
4. 38 days
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1. Assessment-
Extension-
2. Mediation -3. Provisional Recommendation-
4. Determination-
Target -
Overall-
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Process 1-
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Process 2 –
Process 3-
Guidelines on Non-Financial Loss Caused to a Customer
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1. Moderate band –2. Substantial band-3. Severe band-4. Extreme band–5. Unreasonable Delay–
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Case Statistics
Product/Service No. of complaints In favour of Bank %
In favour of Complainant%
Undecided%
Year 2017 2018 2017 2018 2017 2018 2017 2018
Fixed deposit 0 0 0 20
loan/Loan clearance 6 60 60 40 40 0 0
Failure to follow procedure 0 2 0 0 0 0 0
Inconvenience 0
Car loan 2 0 0 66
Insurance/refunds 0 0 0 0
legal fees/fees and charges 4 0 0
2 6 40 0
Unauthorized debits 2 4 0 0
Cross Border Transactions 4 0
ATM/ADT 4 0 0 0 0
Credit card 2 2 0 0
Online 0 2 0 0 0 0 0 0
Business Finance 0 0 0 0
Listing 4 0 0
Cash/cheque scam/ fraud 2 0 0 0 0
Mortgage 0 0
0 0 0 0
Foreign currency 0 0 0 0
Grand Total 64
Comparative to 2016
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Year 2016 2017 2018
Bank No. of Complaints
Formal %
Informal %
No. of Complaints
Formal %
Informal %
No. of Complaints
Formal %
Informal %
Banc ABC 42 44
Bank of Baroda
Bank Gaborone 2 0 0 0
Barclays Bank of Botswana Ltd
40 60.00
Bank of India Ltd 2 0
First Capital Bank of Botswana Ltd
2 0 20.00
First National Bank of Botswana Ltd
22 24.00
Stanbic Bank of Botswana Ltd
4 4 6
Standard Chartered Bank of Botswana Ltd
State Bank of India 0 0
Total Complaints Received
40.4
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Table 3: Total assets per bank
Source: Banking Supervision Annual Report 2016/2017 - Bank of Botswana
Year 2016 2017 Total Assets(P’ million)
BANK % %
Banc ABC
Bank of Baroda
Bank Gaborone
Barclays Bank of Botswana Ltd
Bank of India Ltd 200 .20
First Capital Bank of Botswana Ltd
First National Bank of Botswana Ltd
Stanbic Bank of Botswana Ltd
Standard Chartered Bank of Botswana Ltd
State Bank of India .46
Total Assets
Year 2016 2017 2018Mode
Newspaper 20 22.22
Radio 0 0
Television 2 4
Through Member Bank
Magazines
Word of Mouth 40 44.44
Referral by Others 2
Total Enquiries 68 100 67 100 90 100
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Process 2016 % 2017 % 2018 %Investigation/ Assessment 40 44
Formal Mediation 20
Provisional Recommendation
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Determination 4
Total Cases 59 100 64 100 71 100
Year 2016 2017 2018
Process % % %Within 21 days
Within 30 days
Within 45 days
Within 60 days 4.0
More than 60 days
Table 5: Manner / Process in Which Files Were Closed
Table 6: Opening and Closure of Complaint Files
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Year 2016 2017 2018
Duration % % %Files closed in 3 months
Files closed in 6 months
Files closed after 6 months
Average number of days to close (working days)
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Table 7: Evaluation of Closures against Service Standards (%)
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Table 8: Analysis of How Decisions Were Made in 2017 and 2018.
Analysis of How Decisions Were Made in 2017 and 2018.
Bank 2016 Amount (BWP) 2017 Amount (BWP) 2018 Amount (BWP)4 2
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Total 59 222,922.98 67 168,406.28 71 338,796.00
6 cases7 cases74 cases29 cases22 cases138cases
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Directors Fiduciary Responsibilities……
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Advice:
Cases Review and SummariesBY Ms Mamolefi Qobose
01CASE
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Pairs of Eyes Are Better….
Advice:
Play Your Cards Well at Retirement
03CASE
02CASE
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Trapped in Foreign Land
Advice:
Ignore Court Processes at your Peril
Advice:
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05CASE
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Be Silent and not Dormant
Advice:
A Friend In Need Is A Friend Indeed
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06CASE
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Advise:
Show me the Body
Advice:
Ignorance of the Law…
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09CASE
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Advice:
Acts of God…
Advise:
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External Engagements
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Marketing and Community Outreach Activities
Financial Inclusion and Education Strategy
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Target GroupsHigh school students
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Consumers of
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University students
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Seniors and government employees
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Public, private and NGO’s
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Cooperation between all these target groups is of critical importance?Financing of the Project
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Code of Banking Practice
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Glossary of Terms
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* ATM -
* BAB-
* Bank-
* Banking Ombudsman- Ombudsman
* Bank customer/ client-
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* BOB- Bank of Botswana
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* Complainant-
* Dispute-
*Independent Review-
* INFO-
* Jurisdiction-
* Publicity Committee of the Bankers’ Association of Botswana-
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Contact Details
Physical Address
Postal Address
Website
Tel: Fax: Cell:
ANNUAL REPORT - 2017 / 2018
BOTSWANA BANKING OMBUDSMAN
Botswana