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.