Guaranty Trust Holding Company CEO Urges Lower Cost of Data to Drive Financial Inclusion

Segun Agbaje, the Group Chief Executive Officer of Guaranty Trust Holding Company (GTCO), disputed the notion that continuous use of Unstructured Supplementary Service Data (USSD) for fund transfers would deepen Nigeria’s cashless policy as pursued by the Central Bank of Nigeria (CBN).

Agbaje emphasized that the future of financial inclusion and increased literacy lies in reducing the cost of data, making it more affordable.

Agbaje drew a parallel with India, stating that the two countries share similar demographics and highlighting that India has achieved remarkable progress in financial inclusion.

He expressed his belief that USSD technology is cumbersome and costly, while internet banking offers a more robust and technologically advanced alternative.

According to Agbaje, the fight over USSD has served as a distraction created by telecommunications companies. He argued that banks are advocating for the protection of customers, insisting that they should only pay for successful transactions and not for transactions that were not calculated on their accounts. He challenged the widespread use of USSD, stating, “USSD is not the answer.”

Agbaje called for a shift towards mobile banking, which he viewed as more advanced and user-friendly, requiring less data consumption.

He stressed the urgent need to reduce the cost of data in Nigeria, pointing out the disparity between data costs in Nigeria and India.

He emphasized that lowering data costs would enhance financial inclusion and increase interest in the country.