There is need for Deposit money banks in Nigeria to enhance their innovative strategy to absorb the 63 percent of adults in the Sub-Saharan African region who have no bank account.
A new report on Financial Services for Everyone, from Ericsson Consumer Lab revealed that 63 percent of the total population is unbanked, while 52 percent of the total population uses mobile money through an agent.
The report presents insights from a sample of 6,215 respondents aged 17-59, representing 150 million people across five countries: Angola, Democratic Republic of Congo, Ghana, Nigeria, and Uganda.
A high number of inhabitants, particularly those in rural areas, note that accessibility is the key hindrance to having a bank account – both in terms of location and opening hours. Many also believe that they do not have enough money or savings to open a bank account, or do not wish to incur potential associated banking fees.
One of the key findings of Enhance Financial innovation and Access (EFInA) 2014 survey, was awareness of deposit money banks in the country which revealed that First Bank Nigeria limited had the most first mentions taking 27.0 percent the highest share of awareness of banks.
This is followed by UBA – 8.3 percent, Ecobank – 5.9 percent, Union bank – 4.6 percent, Access bank – 4.2 percent and GTB – 4.1 percent.
Others are Diamond bank – 2.9 percent, Zenith bank – 2.3 percent, Unity bank – 2.2 percent and Skye bank – 1.8 percent.
However, Mobile money services are bridging the gap between the unbanked and banked, as more have access to mobile money compared to banking services.
Patrick Hedlund, Senior Advisor, Ericsson Consumer Lab, says that for this large, unbanked proportion of society, cash is the predominant way of receiving and making payments, as well as saving and borrowing. Yet, since more people have mobile phones than bank accounts, mobile financial services offer a stepping-stone to financial inclusion.
With 93 percent of Sub-Saharan African citizens engaging in some kind of financial activity, it is clear that access to financial services is highly needed by all. Of course, whether banked or unbanked, all those that conduct financial activities need to handle cash, Hedlund said, in Lagos.
However, Banks are the most trusted institutions for financial matters in general but are also most preferred to provide mobile money services. These are considered as institutions with a proven financial track record and established brand.
HOPE MOSES-ASHIKE
