- ‘Consumer Banking is Future of Financial Services in Nigeria’
Nigeria’s premier consumer finance provider, Motion Yield Limited has said consumer banking is the future of financial services in Nigeria.
Addressing journalists in Lagos, the Chief Executive Officer, Abiodun Oyelaja, revealed that going forward consumer banking would be withdrawn from commercial banking, while banks would be concerned about major commercial banking.
Oyelaja who expressed optimism about the future of consumer banking said Nigeria is gradually growing on its financial inclusion process and looking for innovative measures to strengthen the sector.
He said: “A lot of things have been done on financial inclusion like the credit bureau law, collateral registry that has been passed, it is really promoting financial inclusion. It is going to revolutionise the financial service sector.”
“For the credit bureau law that was passed, it is actually in our favour, we have been using the credit bureau law before it was passed. At the moment there are three credit bureau registries in Nigeria, all of which are on our platform, we need to understand customers and credit worthiness, which is why we are using them. The more reason we are happy with the government passing the bureau into law because it is going to deepen credit to individuals in the financial sector,” he added.
With specialist expertise in providing credits to individuals and groups, Oyelaja said the consumer finance provider has a lender’s permit to operate as a consumer banker, which comes from the court and it’s not licensed by the Central Bank of Nigeria (CBN) and we does not take deposit.
He noted that the vision of the company is to convert to regional banking by 2020, saying “what we are doing at the moment is to study the law, so as to know how to use to our advantage. In motion yield, we do things differently, call it disruptive banking that is what we do. We don’t want to follow what others are doing, we want to do something different because we want to achieve a different result.
He disclosed that the firm give loans to customers at an interest rate of 4.45 per cent, which cuts across the cost of its operations.
“We are trying to do disruptive banking. We don’t believe in having a gigantic office, multi storey building. We believe in understanding what we want to do and adopt the necessary technology. We adopted technology and we believed in it; our cost of operations is lower, the reason we have been able to charge such rate. The interest rate is not really high, we have the lowest in the industry.