Senegal’s financial mediation system has seen a remarkable surge in usage, with a 92% increase in referrals to the Financial Services Quality Observatory (OQSF) in 2024.
The rise in cases reflects growing public awareness of this free service, which resolves disputes between citizens and financial institutions without resorting to costly legal proceedings.
According to the OQSF’s annual report, 71 insurance cases were referred to the mediator in 2024, a sharp increase from 38 the previous year. The financial stakes in these disputes amounted to 235.5 million CFA francs.
However, the most notable growth was observed in the banking and microfinance sectors, where complaints quadrupled—from 77 in 2023 to 308 in 2024.
This sharp uptick indicates that Senegalese citizens are gradually becoming more aware of the financial mediation system’s availability and effectiveness.
Since its establishment in 2009, the insurance mediation system has maintained a high success rate, with nearly 90% of cases being resolved amicably.
For the banking sector, 2024 saw a 90% resolution rate, with an average success rate of 92.56% over the past five years. In the insurance sector, the majority of claims—72%—pertained to automobile damage, while 25% involved personal injury, including 13% cases of death.
OQSF officials attribute the increase in referrals to a successful awareness campaign launched in 2024, aimed at informing the public about the benefits of financial mediation.
The campaign, supported by the European Union and carried out in collaboration with Grant Thornton, reached nearly 1,950 participants across Senegal.
Targeting local authorities, economic operators, consumer associations, and even security forces, the campaign focused on ensuring that citizens understand how to access the system and use it to resolve disputes.
One region particularly benefiting from these efforts is Tambacounda, where the financial mediation system has seen a significant increase in referrals. Much of this is attributed to challenges faced by local farmers following natural disasters, which have triggered an uptick in complaints about credit repayment difficulties.
Papa Amadou Diagne, Executive Secretary of the OQSF, highlighted the growing importance of mediation in ensuring consumer protection and fostering trust in Senegal’s financial system.
“The financial mediation of the Observatory for the Quality of Financial Services has become an essential tool in strengthening consumer protection and confidence in the financial system,” he said.
While the growth in referrals is promising, OQSF officials caution that the system remains underused by the wider population.
They noted the absence of an insurance expert at the OQSF for over two years, which has hindered the efficient processing of technical files.
To address this, they recommend recruiting an expert and expanding awareness through a comprehensive media campaign.
The OQSF has also put forward several recommendations to improve the financial sector. For the insurance sector, these include enhancing pre-contractual information using national languages, improving transparency in pricing, and ensuring timely settlement of claims.
The creation of an insurance clearing house is also a key recommendation, which would streamline processes and reduce the time required to resolve disputes.
For the banking sector, mediators advocate for the establishment of emergency funds to assist farmers affected by natural disasters and the introduction of mandatory agricultural insurance.
They also propose debt rescheduling measures and the introduction of quicker procedures to restore customer rights after failed ATM withdrawals.
Despite the progress made, the OQSF urges both individuals and businesses to make greater use of the system.
With a resolution rate of around 90% and processing times generally under three months, financial mediation offers an effective alternative to the lengthy and expensive legal process.
As Senegal continues to build a more inclusive and transparent financial sector, the success of the mediation system is increasingly seen as a cornerstone of consumer protection.
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