Agent banking in Nigeria: factors that would motivate merchants to engage – Sep 2013

In countries across the globe, banks are increasingly using agents to provide financial services to customers, especially for the low income segment.

In February 2013, the Central Bank of Nigeria (CBN) released the “Guidelines for the Regulation of Agent Banking and Agent Banking Relationships in Nigeria” as a part of its effort to deepen financial inclusion in Nigeria. In August 2013, the CBN released a circular to provide guidance on the approval process for financial institutions wishing to deploy agent banking services in Nigeria.

To support the successful development of pervasive agent networks for the provision of financial services, EFInA commissioned a research study on “Agent banking in Nigeria: factors that would motivate merchants to engage.” The study provides relevant insights on pre-existing relationships between merchants and their customers; merchants’ expectations for undertaking agent banking services; key barriers to merchants adopting agent banking; customers’ perceptions of agent banking; and factors that will drive the adoption of agent banking in Nigeria.

The findings from the study will provide input for deposit taking financial institutions to determine the viability of deploying an agent banking network as well as to develop their go-to-market agent banking strategy including the customer target, resourcing requirements and target agents.

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