Mallan Sanusi Lamido Sanusi, CBN & mr Yemi Adeola, Sterling Bank plc
From Benjamin A Ameh, Lagos
Financial inclusion initiative campaign intensifies as CBN and Sterling Bank hit local market with agent banking.
The Central Bank of Nigeria CBN on Wednesday witness Sterling Bank Plc’s agent banking inauguration, which is expected to boost the financial inclusion strategy introduced by the central bank in 2012.
The CBN had recently released the agent banking guidelines to all financial institutions. The guidelines are to ensure increased agent activity in the delivery of banking services outside the traditional brick and mortar bank branches, through additional financial access points such as existing retail stores, petrol stations, post offices or via technology such as Point of Sale devices and mobile phones.
The Governor of the Central Bank of Nigeria, Mr. Sanusi Lamido Sanusi in attendance, the Sterling bank’s agent banking inauguration at the Makoko Fish Market in Lagos.
Sanusi during his opening remarks underscores the need to provide access to affordable financial services and products for every Nigerian.
This, he added, would lead to economic development and better life for all Nigerians.
The CBN boss stressed that the financial inclusion strategy was aimed at reducing the number of adult Nigerians, who are excluded from formal financial services from 46.3 per cent in 2012 to 20 per cent in 2020, with specific targets for payments, savings, credit and insurance.
He further stated that to sustaining the country’s development hinges on ensuring that at least 80 per cent of all adult Nigerians have access to affordable financial services.
The governor also noted that the CBN had identified certain barriers to achieving financial inclusion, which he listed as distance to bank branches, cumbersome account opening requirements, lack of awareness of financial products and services, among others.
However, he pointed out that the CBN had taken steps to tackle the identified barriers through agent banking, mobile banking/ payments, tiered Know Your Customer regulations, cash-less policy initiative, national financial literacy framework and the establishment of a consumer protection department in the central bank.
Sanusi expressed delight that Sterling Bank had decided to take the agent banking approach to reach the millions of the unbanked Nigerians in the financial system and by so doing, empowering them to become economically viable.
He cited the countries like India and Brazil, where agent banking has expanded rapidly with India having over 50,000 banking agents and Brazil with over 150,000 agents as of 2011, increasing their reach to previously underserved people and societies.”
The Sterling Bank, Managing Director, Mr. Yemi Adeola, noted that the bank’s financial inclusion scheme is a product of robust strategy, which has several components.
Adeola pointed out some of these as ease of account opening, implementation of mobile money product, partnership with over 50 microfinance banks on a number of financial inclusion initiatives such as Automated Teller Machine deployment, co-branding of debit cards and provision of shared e-payment platforms.
He revealed that “We are strategically targeting our financial inclusion initiatives at communities where our efforts will have the greatest impact. We shall continue to provide creative ways to bank the unbanked.”
