Former senior executive at MTN Nigeria and the chief commercial officer at Itex Integrated Services Limited, Adekunle Adebiyi, has said rural areas must become the focus for Nigeria to achieve financial inclusion goals.
He spoke extensively on the impact of fintech and Nigeria’s financial inclusion goals, in a recent interview on Nigeria Info FM.
Adebiyi shed light on the role of fintech in the country’s financial inclusion strategy, and how a focus on rural distribution can help reach more unbanked Nigerians.
According to him, “Fintechs work with traditional banks to improve the sustainability and accessibility of the services they offer to the public. Because of this, distribution is crucial if we are to reach Nigerians without bank accounts.
“Rural areas, where more unbanked people reside, must become the focus instead of metropolitan and semi-urban areas. As a country, we have made progress toward financial inclusion, but if we are to meet our goal, we must use financial technology.”
He added that rural communities continue to suffer as banks cut operational costs by reducing the number of ATMs and branches, focusing instead on getting more customers to embrace digital banking through smartphones.
He noted further that traditional banking and financial technology are not on either side of the divide; I see a convergence, saying fintech is about using technology to enhance the process of financing, making it easier, accessible and sustainable.
Citing example, he said, Itex has made buying electric bills easier; with a mobile device you can top up and pay for power without leaving the comfort of your home, that’s the effect of financial technology.
According to World Bank’s 2021 Global Findex, Nigeria was one of seven nations that contributed to half of the world’s unbanked population.
By the end of 2021, the number of financially excluded persons in Nigeria was estimated to be 38 million, even though the gap between banked and unbanked people has been closing since 2011.
Following the COVID-19 pandemic, digital financial transactions increased by 325 per cent to N704.04 trillion in 2020 from N165.8 trillion in 2019. According to NIBSS data as of August 2022, the volume of financial transactions in a month had reached an all-time high, totalling N238.7 trillion.
Adebiyi pointed out that Nigerians may support the CBN’s cashless strategy, but that does not necessarily mean that the unbanked have increased access to these financial services, saying that as a result, fintech is crucial in Nigeria’s effort to achieve financial inclusion.
The Central bank of Nigeria has set a target to reach 95 per cent financial inclusion by 2040.
