A large number of the low income segment of the Nigerian population is reported to be unbanked or under-banked amidst concerns that the entry barriers set by the banks for customers who desire to open bank accounts are high. However, concerned stakeholders are of the view that this ought not to be, given the amazing breakthroughs that technology is propelling across various sectors of the Nigerian economy. Daniel Obi examines how after seven years of entering the Nigerian market, Etisalat, Nigeria’s most Innovative Telecommunications Company is breaking the barriers to financial inclusion with its easy mobile money solutions.
Few days ago, a caller to a phone-in radio programme relived a harrowing experience he had over 10 years ago when he went to a commercial bank to withdraw a sum of money. He needed to buy a few things on the eve of a major festive holiday. He literally ‘slept’ in the bank that day. Although he was lucky to get the money, he lost significant productive man hours that could not be recovered.
His experience was not peculiar. Jam-packed banking halls, long queues and long hours of waiting are common issues the banking populace faces in Nigeria. In some cases, meeting banks’ stringent documentation requirements in line with the Central Bank of Nigeria’s (CBN) Know Your Customer (KYC) guideline also poses a major problem for many Nigerians. For these reasons, banking sometimes becomes unattractive to many bank customers, and more irritating to potential customers.
These critical issues appeared to be intractable for many years but the introduction of Global System of Mobile (GSM) telecommunications has accentuated the search for more innovative ways to solve the problem of low banking penetration in the country. Close to one-and-half decades since GSM was introduced, the gap is fast closing up. Life is also getting better for the populace as telecommunications service providers continue to offer an array of innovative solutions that help their customers solve everyday problems including more convenient ways to access banking services.
Taking advantage of GSM technology, the CBN, in a bid to stem the low banking penetration among Nigerians, subsequently introduced tier one account opening requirement which makes it easier for customers to access banking services with little documentation. In line with this, Etisalat Nigeria identified an opportunity to partner with Guaranty Trust Bank Plc and subsequently introduced GTEasySavers account for the purpose of addressing the entry barrier for prospective savers in view of the minimal required KYC.
Seven years after launching into the Nigerian market and despite being the fourth entrant in the Nigerian telecoms industry, Etisalat Nigeria has challenged the three older service providers on the innovation front. In keeping with its core brand propositions of innovation, youth centricity and customer centricity, Etisalat has continued to raise the bar of innovation in so many ways – products, services and corporate social responsibility.
The launch of GTEasySavers, according to the telecoms service provider, further underlines its commitment to innovation. GTEasySavers is an innovative product that enables customers to own and operate bank accounts on their mobile phones. It was designed to enable under-banked and unbanked individuals achieve their financial goals while operating a regular bank account via their mobile phones. The unique features of the savings accounts include enabling Etisalat subscribers to deposit cash, carry out biometric update, withdraw money and carry out transfers with ease via their mobile phones. All that a customer needs to do is to visit the nearest GTBank branch or Etisalat Experience Centre/GTEasySavers agent and request a cash deposit and biometric update which will then be processed by the teller (at the bank) or GTEasySavers agent.
In addition, the benefits of GTEasySavers account include instant account opening (no data or airtime is required), higher interest rate on savings, airtime bonus on cash deposit, withdrawal service at GTBank branches, agent locations and/or Etisalat Experience Centres and double recharge offer.
Speaking about GTEasySavers, Matthew Willsher, CEO of Etisalat Nigeria, described the innovative service as a new chapter in the continuing growth of the banking industry. He said: “Enabling account opening via an Etisalat phone will make it more convenient for individuals to carry out transactions using the transformative power of the banking system.”
He said further that in seven years of business operations in Nigeria, Etisalat has maintained the highest network quality in Nigeria, and that the partnership with GTBank is another innovative way Etisalat adds value to the lives of its customers and to make banking accessible to more Nigerians. “We will continue to offer innovative products and services that enable Nigerians to do more as we together walk the path of greatness in our journey to build a stronger and prosperous economy for Nigerians,” Willsher stressed.
Lucas Dada, director, Enterprise Segment, Etisalat Nigeria, described Etisalat GTEasySavers account as a solution that removes the entry barrier posed by the stringent bank account opening process which customers are mandated to comply with. “We identified that there is a large population of customers who desire to open savings accounts with banks, however, due to the KYC entry barrier, they engage the services of daily savings agents. These agents provide cash savings services to the customers at a high cost,” he said.
He added that the account is a simple platform that offers ease of banking real time. “Registered subscribers on Etisalat’s network can conveniently open a GTEasySavers account by simply dialing a USSD short code “737*0#” via their mobile phones, and a 10-digit GTBank account number is sent via SMS immediately. Funding of the account can be done by cash deposits at Etisalat Experience Centres and GTBank branches; electronic transfers from other bank accounts; Cash Deposit ATMs at GTBank branches and GTExpress Agent locations,” he stressed.
Commenting on the partnership, Segun Agbaje, managing director/CEO of Guaranty Trust Bank Plc, stated that “GTBank is passionate about driving the CBN’s financial inclusion strategy in ensuring the under banked and unbanked, begin to find the propositions of banking services more attractive and convenient and then take the bold step of patronising our numerous bank products and offerings, a passion which we fully share with Etisalat Nigeria”.
Without mincing words, the launch of GTEasySavers account has been a compelling story of an impactful initiative as over 200,000 accounts were opened in the first three months of its launch. The initiative has also been commended by some of the beneficiaries. Precious Omawuike, the first person to open a GTEasySavers account, expressed joy because of the immediacy with which she got her account number and transaction alert. “The beautiful thing about this is that, from the comfort of my home, I am able to check my account balance or view a recent transaction”, she said.
Another account owner, Chibuzo Njoku, confirmed that he will continue to carry out transactions on the account with his ATM card. According to him, “the benefit of this service is the control it gives me over my money, wherever I am and whenever I need it”.
On his part, Sunday John, another customer explained that “the service would save customers time and effort”.
He added that he was glad when he got his account number and transaction alert immediately. “Now I can do most of my banking transactions after banking hours from anywhere, irrespective of whether I am traveling, but what I like most is the ease of opening the account and the fact that I do not need to visit a bank to do that”.
Expatiating on other similar mobile money solutions from the stables of Etisalat Nigeria, Dada said one of them is EasyWallet, an innovative application that gives Etisalat customers easy and convenient access to their mobile money wallet and bank account. This, he described as Agency Banking. “Etisalat Agency banking is an initiative to reach out to the under-served and unbanked segments of the population through the use of non-banking retail outlets in line with the financial inclusion strategy introduced by the Central Bank of Nigeria,” Dada said.
It is safe to say that through mobile banking, Etisalat is not only bridging the gap for the unbanked, it is also transforming the financial services sector as the future of the industry lies in the ability to deliver an integrated, profitable mobile banking solution that gives customers instant access to their accounts on the go while taking away the inconveniences.
