- EFInA: Mobile Money, Agent Banking Acceptance Still Low
Despite the rapid growth in many emerging markets and the high penetration rate of mobile phones in Nigeria, the uptake and awareness of Mobile Money and Agent Banking have been persistently low, Programme Specialist, Agent Networks at EFInA, Henry Chukwu, has said.
Statistics show that 60.4 per cent of adults in the country have access to mobile phones, but only one per cent use mobile money and 16 per centagent banking, according to the EFInA Access to Financial Services in Nigeria 2016 Survey.
Chukwu, who is an expert in Digital Financial Services (DFS), Inclusive products, Banking, Agent Networks, Project Management, Business Development and Operational Strategies, explained that EFInA is a financial sector development organisation focused on making the financial sector work better for the poor. The body is funded by the Bill and Melinda Gates Foundation and the UK Department for International Development.
“Mobile money is an obvious channel for Nigerians at the bottom of the pyramid to use as they adopt financial services for the first time. Up to 25 mobile money Operators (MMOs) have been licensed since the launch of mobile money service in Nigeria in 2009. Despite this large number of MMOs, high mobile phone and SIM card ownership, mobile money uptake and usage is still low in Nigeria.
“The Central Bank of Nigeria (CBN) issued the Guidelines for Agent Banking and Agent Banking Relationships in Nigeria in 2013; and the Operating Framework for Super Agent in 2015 in its bid to deepen the uptake of mobile money and agent banking products. However, the uptake of mobile money and agent banking services still remain low in Nigeria,” he said.
Continuing, he said low awareness, access and trust were some of the key obstacles affecting the uptake of mobile money in the country. Awareness and understanding however remain important drivers of mobile money uptake and usage. Customers need to be fully aware of the mobile money service and understand how it could be beneficial to them. To ensure mobile money and agent banking services get the best visibility possible in Nigeria, operators need to consider a wide variety of marketing strategies and options.
“Based on findings from the EFInA Access to Financial Services in Nigeria 2016 Survey, the fact that 73.4 per cent of adults who have not heard of mobile money are prepared to use new technology shows an immense opportunity for mobile money and agent banking penetration in Nigeria.
‘’EFInA has, therefore, developed and engaged in different initiatives, working closely with financial services providers and the regulator to promote awareness, uptake and usage of these services in Nigeria,” he added.
Some of the low-cost options which have been identified for improving mobile money awareness in Nigeria include word of mouth/confidence, which usually result from up-and-running platforms, liaisons/collaboration with community or market leaders, campaigns through Local Transport Systems such as slogans and pictures displayed in buses and mass awareness campaigns through market storms, road shows, use of branded items and leveraging on existing market clusters or the different associations.
Other avenues, Chukwu said, include referral method (Loyalty) which could be effective as 41.5 per cent of those aware of, mobile money heard through family and friends and set up awareness booths at local festivals/fairs/community events.
He said EFInA recently collaborated with the CBN and financial services providers to conduct mass awareness campaigns in selected local government areas in the North. These awareness campaigns have helped the industry to deepen the understanding, uptake and usage of mobile moneyand agent banking services in the campaign locations. Some of the impacts which have been reported include recruitment of over 500 new financial services agents; On-boarding of new customers on the mobile money wallets and banks’ financial products.
It also include activation of financial services in Kiru community of Kano State which had no bank presence before the awareness campaign and; positioning of financial services agents in locations where there are insufficient bank presence.
“We plan to conduct these campaigns in phases, as we make progress on these different collaborations and initiatives being implemented with stakeholders in the mobile money and agent banking space,” he added.
