According to the World Bank, “Financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance – delivered in a responsible and sustainable way.”

With a population of over 176 people, 64% of the adult population in Nigeria is said to be un(der)banked.

Nigeria is a country where the financial sector also boast of 22 commercial banks, over 400 Mircofinance banks and over 23 Mobile Money Operators who have been trying to tap into the market potential of the large un(der)banked population in the economy.

Experts say that the current un(der)banked population control over 75% of daily retail transaction because the country is yet to fully transit from her traditional cash based economy.

The result is the increasing number of informal financial operators whose activities is not regulated but control high volume of liquidity which can transform into economic opportunities…….

Undoubtedly financial access aids day-to-day living. It helps individuals, families and businesses plan for everything whether long-term goals or even unforeseen incidents.

It is said that people with bank accounts are more likely to use other financial services, such as credit and insurance, start and expand businesses, invest in education or health, all of which can improve the overall quality of live.

It is no surprise therefore that the central bank of Nigeria (CBN) yearns for every Nigerian to have access to financial service.

Financial inclusion is significant in Nigeria because of the really large informal sector. A sector that includes millions of traders, farmers and resident in rural and suburban areas with little or no access at all to financial services.

With the current macroeconomic challenges and uncertain outlook, the Retail space in Nigeria has great potential for deposit mobilization, engaging the underbanked, converting the unbanked, creating liquidity, driving cashless policy and promoting economic growth.
Undoubtedly, no one player or sector can do this alone. To make progress with financial inclusion we need to get pass the debate about whether financial inclusion should be Telco or bank led.

Mobile network operators have massive foot-prints, distribution and retail networks and huge customer leverage at the base of the pyramid. They can provide the best opportunity to offer more financial services to enhance and expand financial inclusion.

Banks on the other hand are in the pole position to expand financial services for the base of the economic pyramid. Particularly with new technologies that allow banks to reach customers efficiently across the country.

Recent reports indicate that mobile phones can help accelerate financial services – especially for people living in rural areas who are poorly served by traditional banks.

Although the Central Bank of Nigeria (CBN) in her regulatory capacity has introduced several measures through policies, guidelines, licencing, researches and support towards bringing the un(der)banked into the mainstream which has opened up opportunities for all the financial institutions to replicate the same success of stories across the world such as in Bangladesh and Kenya, industry experts say that to move forward regulation and policies should also allow space for nonbank players to have a role in the financial space that do not stifle innovations.

The Regulator should walk–the-talk by providing an appropriate enabling environment in keeping pace with new technologies, new players, and collaborations that support interoperable mobile payments infrastructure, promote mobile money and bank agents thereby closing any “digital divide”.

Quotes:
“Financial inclusion ensures that irrespective of income level, all individuals, households and businesses have access to appropriate and affordable financial services products”. Godwin Emefiele, Governor, Central Bank of Nigeria

“Around 2 billion people don’t use formal financial services and more than 50% of adults in the poorest households are unbanked. Financial inclusion is a key enabler to reducing poverty and boosting prosperity.”
WBG President Kim has called for Universal Financial Access (UFA) by 2020.

Financial inclusion helps lift people out of poverty and can help speed economic development. It can draw more women into the mainstream of economic activity, harnessing their contributions to society.
Sri Mulyani Indrawati

“Financial inclusion can no longer be treated as a fringe subject. It has to be recognized as an important part of the mainstream thinking on economic development.”
Jayanta Nath Mukhopadhyaya

“New disruptive technologies, like mobile platforms, coupled with progressive public policies offer exciting cost-effective opportunities to expand access at a scale not deemed imaginable even a few years ago.”
Robert Annibale, Global Director, Citi Inclusive Finance and Citi Community Development

Don Pedro Aganbi the CEO TechTV Nigeria:
He is a Moderator and Conference Speaker on Technology & Entertainment space Tel: 08023135915, email: getdonpedro@gmail.com