Financial Inclusion, Suzieedee com n see oh.

WorldChanger7:


Mobile Money would have work in Nigeria if there is a robust agency network spread to facilitate transactions but currently, majority of the un(der)banked prefer a trusted platform that can guarantee the safety of their deposit and gives them additional value such as interest, microcredit etc. which are not available on Mobile Money

Good day sire,
Please, I would like to know how mobile money operators make their money. Do they charge their customers a certain amount of fee or they receive a percentage at a particular period of time. please if you know, kindly enlighten me

With this type people now in the helms of affair any hope for advancing our cashless economy talk less of financial inclusion.

Money is not meant to be shored up in one place but to be invested to generate more money.

[quote author=emmabest2000 post=43712795][/quote]emma its possible

you can ask him....but it seems he doesn't want to treat the case any longer

igwedaboss:


Good day sire,
Please, I would like to know how mobile money operators make their money. Do they charge their customers a certain amount of fee or they receive a percentage at a particular period of time. please if you know, kindly enlighten me

Why do you ask Sir? Hope you ain't planning to become an MMO cos CBN won't grant that request, all MMO in Nigeria need to have heavy link to DMBs. MTN n other telco's tried to be MMO buh declined.

As an agent you stand to get up to 70k/month via incentive, commission n annuity.

NCP:
This topic is now no 6 on NL frontpage yet the ongoing discussion of thread itself is still on one page.

Nigeria is not Ready for this type of cashless economy. We don't trust the Government, Telcos operators, NCC, our financial institutions can't be trusted to implement a country wide banking system for the under banked population and more.

Let me explain something sir, the un-banked have several ways to be included either by going to a bank with just two passports to open an account or using their phones to open an account instantly without visiting a bank.

The unprivileged once amongst us are being paid monthly via wallet account therefore ur "it won't work" theorem is false cos it's working already

I know for firstbank that all Gloworld stores are like a mini bank(ie Agent) to carry out financial transaction.

vimi:

Why do you ask Sir? Hope you ain't planning to become an MMO cos CBN won't grant that request, all MMO in Nigeria need to have heavy link to DMBs. MTN n other telco's tried to be MMO buh declined.

As an agent you stand to get up to 70k/month via incentive, commission n annuity.

what's DMBs sire?
Praga for example or simplepay, is it the #70,000 they earn or they have charges that's is approved by CBN.
Why am asking is, I read through CBN's guidelines for MMOs and in one section they said, there must not be charges, it got me confused... I'm now wondering on MMOs make their money

igwedaboss:
what's DMBs sire?
Praga for example or simplepay, is it the #70,000 they earn or they have charges that's is approved by CBN.
Why am asking is, I read through CBN's guidelines for MMOs and in one section they said, there must not be charges, it got me confused... I'm now wondering on MMOs make their money

DMB: deposit money banks

The 70k is not fixed n could vary as iit depends on how agent transacts that month n is generated via incentive, commission and annuity as a Mobile Money agent(eg firstmonie)

I humbly admire your curiosity sir, buh the word 'charges' could mean so many things in banking, I can't go very deep on how MMO make their cash...

Deeman87:
Financial Inclusion, Suzieedee com n see oh.

lol I don see oh

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Quite informing. But please, when next you write, find someone to help you proof-read so the errors in grammar and spelling would be reduced.

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vimi:


DMB: deposit money banks

The 70k is not fixed n could vary as iit depends on how agent transacts that month n is generated via incentive, commission and annuity as a Mobile Money agent(eg firstmonie)

I humbly admire your curiosity sir, buh the word 'charges' could mean so many things in banking, I can't go very deep on how MMO make their cash...

Thank you for your time. But if there's a post you can refer me to or summarized it. I would really appreciate it. The different ways mmo make their money. Thanks.

igwedaboss:


Good day sire,
Please, I would like to know how mobile money operators make their money. Do they charge their customers a certain amount of fee or they receive a percentage at a particular period of time. please if you know, kindly enlighten me

Baed on the model used here in Kenya, to deposit into your mobile money account which is your phone number, it is FREE but to send to another number you pay a fee and also to make a withdrawal from your account there is a charge. But one can send to another number paying both the sending and withdrawal charge. The receipient receives an Sms that you have sent him/her a transfer, he.she alongside their ID, goes to the nearest agent with the phone that has the sms in which the withdrawing code is in.

I use airtel money because the withdrawing charges are lower and l do not have to pay for sending to another number irrespective of network. With a Debit card linked to it, l have an option of withdrawing from any ATM with the Visa logo worldwide or make payment over POS.

Vimi I really love the way you emphasise Firstbank mobile money otherwise known as Firstmonie. Firstmonie today has the data,to prove that mobile money is catching on.with over 3.7million subscribers and growing. With mandates for cash disbursements to vulnerable households through various partnerships with NGO's no doubts mobile money is taking roots gradually.Alot of work still needs to be done in terms of policies and sincere efforts by CBN and federal government to promote cashless economy.

DMB: deposit money banks

The 70k is not fixed n could vary as iit depends on how agent transacts that month n is generated via incentive, commission and annuity as a Mobile Money agent(eg firstmonie)

I humbly admire your curiosity sir, buh the word 'charges' could mean so many things in banking, I can't go very deep on how MMO make their cash... [/quote]

igwedaboss:

Thank you for your time. But if there's a post you can refer me to or summarized it. I would really appreciate it. The different ways mmo make their money. Thanks.

Sir, let's not mix the whole thing up. Even telco's can't be a full flesh MMO, they have to be routed via DMBs, buh as an agent you stand to gain incentive on registering customers, commission for helping customers carry out transactions n annuity yearly for firstmonie by firstbank. I've seen an agent that earned bout 200k a month, like I said b4 iit varies. Maybe we talk outside this forum for further clarification
Firstmonieonline.com could be helpful

Pavore9:


Baed on the model used here in Kenya, to deposit into your mobile money account which is your phone number, it is FREE but to send to another number you pay a fee and also to make a withdrawal from your account there is a charge. But one can send to another number paying both the sending and withdrawal charge. The receipient receives an Sms that you have sent him/her a transfer, he.she alongside their ID, goes to the nearest agent with the phone that has the sms in which the withdrawing code is in.

I use airtel money because the withdrawing charges are lower and l do not have to pay for sending to another number irrespective of network. With a Debit card linked to it, l have an option of withdrawing from any ATM with the Visa logo worldwide or make payment over POS.

Thanks

vimi:


DMB: deposit money banks

The 70k is not fixed n could vary as iit depends on how agent transacts that month n is generated via incentive, commission and annuity as a Mobile Money agent(eg firstmonie)

I humbly admire your curiosity sir, buh the word 'charges' could mean so many things in banking, I can't go very deep on how MMO make their cash...

For Financial Inclusion in Nigeria, the guideline stated that there should be no charges to the customer. So for the agent under the current system earning 70K as stated by Vimi, i completely disagree! Stand to be informed, there is no such structure in Nigeria that is currently delivering the full value proposition to the un(der)banked or allowing agent to earn up to 70K! If there are, why is the percentage of un(der)banked still 64%? What is the total volume of transaction on such to facilitate such income to the agent? What is the current cost of such platform to the bank?........No bank in Nigeria is delivering financial inclusion to the un(der)banked!

WorldChanger7:


For Financial Inclusion in Nigeria, the guideline stated that there should be no charges to the customer. So for the agent under the current system earning 70K as stated by Vimi, i completely disagree! Stand to be informed, there is no such structure in Nigeria that is currently delivering the full value proposition to the un(der)banked or allowing agent to earn up to 70K! If there are, why is the percentage of un(der)banked still 64%? What is the total volume of transaction on such to facilitate such income to the agent? What is the current cost of such platform to the bank?........No bank in Nigeria is delivering financial inclusion to the un(der)banked!

No charges to customer?
Is there a link that clearly confirms your claim of Zero charge on transactions. There iis something about charges in banking, that's where the profits come from cos so many parties are involved in the whole process of transaction if made online, settlements have to be done.

I understand CBN lament the practices in some banks, where products and services are deployed at exorbitant costs to the customers, saying the high costs have helped in discouraging many  people from assessing financial services.
Buh let's be realistic, bank buildings need to be maintained, new branches have to be built/rented accessories for daily work, staffs must be paid, cover for frauds(sometimes) n other financial commitment in the part of the bank it will be pure wickedness to ask DMBs not to charge it's customers. The whole essence of any business is for profit last I checked.

For firstmonie by firstbank I never said users(customer) will earn 70k. For the agent there iis an income projection mathematically compiled n iis strictly based on multiple txn, there iis no fixed salary scheme for agents.

Your question on what facilitate their income has been answered b4. Agents get certain amounts for registering a customer which is about N200, cash deposit, bill payment(eg dstv), funds transfer, cash withdrawal n airtime top up for customers come with their own juicy profit percentage that iis simply irresistible.

Current cost of the platform for the bank? C'mon that question ain't necessary buh know most of this robust platforms cost a fortune n maintenance takes away several pounds of flesh from the banks purse n for this singular option charge iis paramount for profit in the electronic business sector of the bank.

DMBs like firstbanks firstmonie delivers financial inclusion where your phone number becomes an account number n money(eValue) The bank leverage its large customer base of over 6m customers n guess what they are all on mobile money buh cos the telco's really wanna dive into this enormous profit making institution by all possible means, like bigtt76 lightly mentioned they tend to want to frustrate the timely actualization of the mobile scheme

NGOs pay their beneficiaries who don't have valid account opening credential or cannot afford going to a full flesh branch.

Firstmonie Partnership with peak; Peak 2015 Milk Million Promo that ran from July 27 to September 2015 shud still be fresh as it simplified the whole essence of financial inclusion as we chat many still maintain thier respective accounts n transact with iit.

Unicef used firstmonie by firstbank to pay its staffs n the less privileged stipends for years, that's financial inclussion sir.
Most NGOs n organizations pay via electronic wallets n firstmonie to be sincere has always bin the first choice with also a vast agent network built over time it will be evil to say that the bank iis not ready for mobile money!

All that is needed is a committed drive n enforcement by the apex bank as most people can't naturally try new things even iif it works in Nigeria wen there is an existing alternative

#MyCandidOpinion

vimi:


Sir, let's not mix the whole thing up. Even telco's can't be a full flesh MMO, they have to be routed via DMBs, buh as an agent you stand to gain incentive on registering customers, commission for helping customers carry out transactions n annuity yearly for firstmonie by firstbank. I've seen an agent that earned bout 200k a month, like I said b4 iit varies. Maybe we talk outside this forum for further clarification
Firstmonieonline.com could be helpful

Can we chat On whatsapp? Here is my number 07054782531 or send me yours.
Thanks

igwedaboss:

Can we chat On whatsapp? Here is my number 07054782531 or send me yours.
Thanks

I buzzed.

Guess this man knows what others don't know (including the banks) on financial inclusion in Nigeria. But wondering why banks, EFInA or CBN is not engaging people like this to help in improving the system and financial inclusion which has great potentials in stimulating socio-economic growth in Nigeria

WorldChanger7:
Financial Inclusion in Nigeria: The Challenges of Banks & Mobile Money Operators (MMOs)

Nigeria Demographic

Nigeria prides itself as the most populated and economy giant of African continent with over 176million people yet 64% (of the adult population) currently un(der)banked! The financial sector also boost of 22 commercial banks, over 400 mircofinance banks and above 23 Mobile Money Operators who over the years, have been trying to tap into the market potential of the large un(der)banked population in the economy.

From findings, the current un(der)banked population control over 75% of daily retail transaction and it will surprise you that even the banked population are encouraging them through cash transactions because the economy has not transit from her traditional cash based. The result is the increasing number of informal financial operators whose activities is not regulated but control high volume of liquidity which could have been use to create economic opportunities if it were in the hands of the formal financial institutions.



Effort of Central Bank of Nigeria

The CBN in her regulatory capacity introduced several measures through policies, guidelines, licencing and facilitating workshops, researches and support towards bringing the un(der)banked into the mainstream. The activities of the regulator opened up opportunities for all the financial institutions to replicate the same success of stories across the world (such as Grameen Bank in Bangladesh and M-Pesa in Kenya) but it only resulted into the current situation of 64% un(der)banked population! Definitely, something is missing!

The various efforts (with even EFInA giving grants to those who can provide solution to the problem) tell of the significant contribution such a population can generate in this economy that is greatly affected by global oil price which has impacted negatively on the financial sectors.

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.



Challenges to the Success of Financial Inclusion in Nigeria

There are several challenges identified that have created the gap and pose as unsurmountable mountain to financial inclusion in Nigeria. They include:

Misconception: Generally, there is a believe that once it works anywhere else (including Kenya), it can work in Nigeria. But the reality is that the culture and economy ideology defer because Nigeria is still predominately cash based. Second, there is another believe that the rate of mobile users should directly result to mobile money subscriber but this, is another mistake because most of the people under the un(der) population are hostile to the wave of electronic financial transaction platform and still believe the “do-it-for-me” service! That is why the “esusu” and “ajoo” (informal financial providers) are strongly trusted and established!
Channel: From the first point (above), it is clear that the prefer channel is not the corporate sit and take coffee approach but rugged style. The reality is similar to gold diggers and commodity trader, while the former dig to extract gold, the former only trade the available gold in the market without even touching it. The most appropriate channel for the un(der)banked is the combination of their trusted traditional method and technology!
Framework: The Mobile Money Operations render financial services through their agents who currently sees such partnership as hindrance to its primary business, while on the commercial banks side, they use contract staffs (called Direct Sales Agent/Executives) to chase customers for deposits with possibility of great risks to bank and lack of comfort by the customers.
Compensation Model: Most of the agent under the Mobile Money Operators and Direct Sales Agent/Executives of the commercial banks complained bitterly on the unattractive incentives from rending such service. Targets that are not backed with market intelligence and strategy for successful implementation!
Market Intelligence: The situation in Nigeria is like asking the sight challenged person (such a blind man) to just run without any direction, assistance or guide! It may shock you that many of the financial institutions (including the Mobile Money Operators) do not even have sufficient market intelligence that can create access to the un(der)banked population. For Instance, in Lagos, many of them don’t even know that there are 442 registered markets with potential of mobilizing over #30Billion deposit (turnover) within 9months!


Moment of Truth

The above points are inconclusive of the current challenges to financial inclusion in Nigeria and your doubt can be cleared if any of the banks and Mobile Money Operators, who claimed to be the pacesetter in financial inclusion can provide analysis of active subscribers, volume and value of transaction, agency spread and profitability! (Trust me, it is just like the empty barrel that makes the loudest noise)

In conclusion, the solution is not far-fetched when the above challenges are thoroughly considered and experts’ advice are consulted for success implementation to increase the percentage of financial inclusion in Nigeria within the next possible time!



Oluwaseun Adesanya

+234-803-849-8000

Lagos, Nigeria

(An international Consultant in financial inclusion and Strategy. He is currently, the head of Corporate Strategy & Performance Management of the leading Software company in Africa, SystemSpecs – Owner of HumanManager and Remita)

https://www./financial-inclusion-nigeria-challenges-banks-mobile-money-adesanya

vimi:


Sir, let's not mix the whole thing up. Even telco's can't be a full flesh MMO, they have to be routed via DMBs, buh as an agent you stand to gain incentive on registering customers, commission for helping customers carry out transactions n annuity yearly for firstmonie by firstbank. I've seen an agent that earned bout 200k a month, like I said b4 iit varies. Maybe we talk outside this forum for further clarification
Firstmonieonline.com could be helpful

Hello sir.
i would like to discuss something with you about the firstmonie stuff.
please sir can I contact you through whatsapp??
if no please sir can I get your phone number?

We are working on a business idea we plan to lunch few months from now. Our major challenge is receiving payments for the goods/services we want to offer.

A greater percentage of our target customers will find it much more convenient to make payment using mobile recharge cards. We are now faced with the challenge of how to quickly convert the said recharge cards (amounting to hundreds of thousands daily ) to cash.

Anyone with an idea of how to go about this should please share.

thanks

I sent you a mail

boombay:

Hello sir.
i would like to discuss something with you about the firstmonie stuff.
please sir can I contact you through whatsapp??
if no please sir can I get your phone number?

WorldChanger7:


Mobile Money would have work in Nigeria if there is a robust agency network spread to facilitate transactions but currently, majority of the un(der)banked prefer a trusted platform that can guarantee the safety of their deposit and gives them additional value such as interest, microcredit etc. which are not available on Mobile Money

In Kenya they are.
Safaricom has Mshwari which allows one to borrow money for a month at a certain interest rate. The amount you can borrow is pegged on your phone transaction history like airtime and money movement in and out of your MPESA .
KCB MPESA is also another one similar to Mshwari on Safaricom. Both are found on the MPESA menu.
Mshwari also has fixed deposit options(backed by CBA) which allow your mobile money to earn interest.
If one has an Equity Orange Money Account, it means your bank account is treated both as an Orange money account( one can withdraw the cash at any Orange agent through the mobile phone) and an equity bank account(Unlike Mpesa, there is no limit to the amount that can be put, you get an Orange money visa card, your money earns interest just like any other bank , you can borrow salaray loans, flexi loans etc on Orange money just like any Equity account).
Airtel was to start a similar program with Chase Bank before the Chase Bank saga here.

A man's wealth is not in the purse He carries, A man's purse quickly empties, if there be no golden stream to refill it.
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The objectives and functions of Central Bank of Nigeria
http://articlesng.com/central-bank-nigeria-objectives-functions/

In recent past, the Nigerian financial system has started to pick up, trying to measure up with other countries financial system, BOFIA is one of the tools used in achieving this.....

https://www.creditpent.com/financial-system-regulation-in-nigeria-classification-of-nigerian-financial-system/