Mobile Money; A service to the unbanked by umoh ubong

In the face of stiff financial competitions in the Nigerian market and global financial advancement, a mobilemoney operator would proudly tell you that mobilemoney has gained grounds in Nigeria and is here to stay. He might even go the extra mile of pointing out a transport vehicle or two branded with mobilemoney stickers. He has clearly passed a message across, "mobilemoney has been introduced into the Nigerian system," but the bone of contention here is; who is the mobilemoney deployment being structured for? According to Wikipedia, "mobilemoney refers to payment services operated under a financial regulation and performed from or via a mobile device."

In my experience as an Agent Relationship Officer I understand that in developing countries, mobilemoney services is being deployed mainly as a means of extending financial services to the unbanked and under banked, which is estimated to be as much as 50% of the world's adult population  according to Financial Access' 2009 report.  However, in Nigeria, a detailed survey carried out in September 2012 by EFInA (Enhancing Financial Innovation and Access) also showed that 65% of our adult population never banked, 3% had previously banked, and 32% were currently banked. 

These staggering statistics shows a major disconnect between the financial institutions and its citizens doing the spending and making transactions. I am of the opinion that if the service is to succeed in Nigeria, mobilemoney operators and licensees should leverage on the rich rural community in Nigeria instead of putting round pegs in square holes. Why should an operator brand a commuter bus that does not even accept its product as an optional means of payment? A merchant location that accepts payment can be branded, a barber shop, or even a football viewing centre where viewers can pay via their mobile devices before watching a particular game. 

On the 5th of August, 2013, the NOI weekly polls conducted revealed that all of the respondents (100%) using mobilemoney services operate a bank account. A tactical approach is needed if we are to make great strides towards the right direction. Operators should resort to making jingles, adverts, and hand-bills in local dialects to sensitize the unbanked. Mobile field agents should be deployed to the grass root communities where their major livelihood are farming, trading, fishing, and hunting and learn to synergize with them thereby creating a level playing field that would pave the way for trust and better communication between both parties. 
On-the-field experience is a different kettle of fish here and requires skills (and some fire brigade approach) which are far from textbook mobilemoney and the typical marketing strategies; mobilemoney is purely practical. Moreover, the unbanked and under banked populace would gladly embrace mobilemoney with both hands if licensees come up with products that are user-friendly and free if technological hiccups. 

It is no news that the mobilemoney service runs concurrently with the services of the Telco’s and are faced with a myriad of network challenges but with Nigerians being routinely subjected to varying degrees of ugly experiences in the banking halls and ATM locations; which son wouldn't smile satisfactorily after transferring money to his ailing mother in the village from the comfort of his home via his phone, which she uses to pay for her drugs at the local pharmacy?

Indeed, mobilemoney has gained grounds in Nigeria and is here to stay and spread a rippling effect outside our shores - if only the operators and licensees can loosen their ties, leave their offices, and come down to the level of the illiterate and unbanked populace. 

Ubong Umoh

Agent Relationship Officer

234-811-525-8127
sludba Team.

Evolvement of Mobilemoney in Nigeria

Mobilemoney; a source of relief to the ones who have phobia for banking hall.

Mobilemoney; what seems to be rocket science to the illiterate and unbanked.

Mobilemoney; an avenue to rip us off our hard earn cash to the ignorant.

These are the one of many perceptions I get from prospective agents while working on the field as an agent network manager.

Yes I agree mobilemoney in Nigeria is indeed a source of relief to those who are “Bank O phobia” if ever there is such a word. They say you can send money to anybody in Nigeria banked and unbanked, pay bills and do airtime top-up anywhere and anytime with no hassles

But when there is need to replenish, its back to the same bank that I have a phobia for, you may think this purpose is defeated, well I hate to rain on your parade, but that thought is totally incorrect.

The CBN setup the agent banking regulations whereby SMEs, shop owners or individuals who are relatively into business can be engaged by a financial institution to provide specific financial service on its behalf using agent premises.

What the CBN has succeeded in doing is to enhance financial inclusion and provide agent banking as a delivery channel for offering banking services in a cost effective manner.

Now mobilemoney users can just walk up to any agent location to make specific transactions, such transactions involves replenishing money to our mobile wallet or initiating a cash withdrawal.

I see mobilemoney growing positively in Nigeria; it’s been two years after the introduction of mobilemoney in Nigeria.

From august 2011 CBN licensed 16 banks and other financial institution to establish mobilemoney services throughout the country.

Reports from Nigerian opinion poll and research organization NOI polls conducted the mobilemoney snap poll in Nigeria. And results say 59% of Nigeria population of more than 160 million is unaware of mobilemoney.

13% of those aware of mobilemoney currently use it

71% of non-users says they could consider using mobilemoney service in the future.

 The poll also states that analysis is based on geo-political zone as it relates awareness levels of mobilemoney in Nigeria vary in different regions.

So basically, mobilemoney needs time to nurture into our daily lifestyle, our mentality has to change in other to embrace this welcome development, cos it is a fact that a typical Nigerian has no trust for the system.

If government can introduce basic form of mobilemoney education into our schools, if sensitization and awareness level on mobilemoney increases in our economy and also if competition amongst the mobilemoney licensee become steep, then I feel Nigeria will take the world by storm.

However, on a positive note, mobilemoney brings promising opportunities for financial inclusion. The provision of financial services to over 100 million regarded as unbanked, in my opinion, it would lead to a higher standard of living and an improved social equity. The unbanked can make use of the opportunity to save, borrow money to pursue business opportunity and transfer funds efficiently.

From the business perspective, financial inclusion is an opportunity to expand the financial service market and build a long term goal.

However, for a better financial inclusivity, stakeholders need to invest more on service delivery and weaning process by encouraging branchless banking whereby agents will be rewarded for providing mobile financial services which will drive a controllable traffic of transactions.

EGBUNA JESSE ARINZE

sludba Team.