Agent banking in Nigeria: factors that would motivate merchants to engage
September 19, 2013
EFInA hosted its fourth breakfast series event to disseminate key findings of its research study titled “Agent banking in Nigeria: factors that would motivate merchants to engage,” as well as engender debate and stimulate ideas on how to promote ubiquitous agent networks in Nigeria. The event provided an opportunity for stakeholders to better understand how to encourage merchants to provide agent banking services.
From the EFInA Access to Financial Services in Nigeria 2012 survey, one of the top factors that would encourage the unbanked to open a bank account is having a bank closer to their home/place of work. Therefore, the development of pervasive agent networks will help to increase access to a broad range of formal financial products and services; and thereby deepen financial inclusion in Nigeria.
Mr. Musa Jimoh, Deputy Director, Banking and Payments System Department, Central Bank of Nigeria, clarified the agent banking approval process and regulatory reporting requirements.
The guest speaker at the event was Mr. David Porteous, Managing Director, Bankable Frontier Associates. Mr. Porteous presented agent banking models from other countries to illustrate key factors to consider when establishing a shared agent network. Mr. Porteous stressed the importance of an economically viable model, stating that, “No matter how hard you try to build an agent network, if it doesn’t work from an economic point of view, it won’t last.”