(Business in Cameroon) – Cameroon has launched a new digital platform called BankCompar to help consumers compare banking fees and understand the real cost of loans. The platform was officially introduced on June 20 in Yaoundé by Pierre-Emmanuel Nkoa Ayissi, Secretary General of Cameroon’s National Economic and Financial Committee. He also serves as the National Director of BEAC for Cameroon.
BankCompar is designed as a multi-functional tool to provide clear information on banking fees and simulate the actual total cost of borrowing, also known as the effective interest rate (EIR).
These extra costs often fuel tensions between clients and banks, largely due to a lack of transparency. Speaking at the launch, Nkoa Ayissi explained that the EIR represents the true price of borrowing. It not only includes visible interest rates but also additional charges that many clients are unaware of. These charges can include administrative fees, insurance, collateral requirements, notary fees, taxes, and various commissions.
Concerns over poor transparency and irregular loan cost calculations have been growing in Cameroon. A 2020 survey of credit institutions revealed multiple issues. Many banks fail to calculate EIR using the correct method set by BEAC, the central bank of Central African states. Some lenders also lack tools to calculate the EIR for non-amortized credit products such as overdrafts, guarantees, factoring, or discount facilities.
The problems do not stop there. Several banks do not share the EIR with customers at all. In some cases, they even approve loans that exceed legal interest rate limits, especially for vulnerable groups like individuals and small businesses.
In response to these concerns, the National Economic and Financial Committee of Cameroon developed BankCompar to improve transparency and empower consumers. The platform allows individuals and businesses to calculate the real interest rate applied to their loans.
“The comparison tool will display the most common banking fees used by individuals in Cameroon. The simulator will make it extremely simple, even fun, to estimate the true costs of loans offered by banks for all types of customers,” said Nkoa Ayissi.
