Tier-one financial institution in Nigeria, Access Bank Plc, is not resting on its oars despite recently hitting a milestone of having 100,000 banking agents spread across the country.
The lender is planning to dominate agency banking business in Nigeria and to achieve this, it wants to further increase its footprint by having a minimum of 50 agents in each of the 774 LGAs across the country.
According to the bank, this is part of efforts to deepen financial inclusion, increase its customer base and deepen the wallet share of the banking population through the Access Closa agency banking platform.
In a chat with newsmen recently, the Group Head of Agency Banking at Access Bank, Ms Chizoba Iheme, noted that due to the limited number of financial institutions, especially in rural areas, Access Closa is Access Bank’s strongest retail channel used in providing banking services to a large population of unserved and underserved Nigerians.
“Our plan is to bank one in two Nigerians as this will see us increase our customer base and deepen our wallet share of the banking population.
“Going by the high youth and adult population, the resources of Nigeria’s financial institutions are being overstretched in providing physical and human resources and were unable to cope with gaps that existed in meeting banking needs of Nigerians hence the need for Agency Banking as envisaged by the Central Bank of Nigeria (CBN) in 2013,” Ms Iheme was quoted as saying in a statement from the lender on Wednesday.
“Therefore, agency banking helps financial institutions decongest crowded branches by providing a matching and more often convenient channel for their customers. In instances where reaching customers in rural areas is often highly expensive for financial institutions because transaction numbers and volumes do not cover the cost of a branch, agency banking helps in serving them,” she added.
The banker said becoming an agent has become a means to empower and reduce unemployment in Nigeria, noting that, “Our commission structure allows an agent to earn up to N500,000 and more monthly in commission including incentives and opportunities for agents to grow their business and partner with a reputable brand is an attraction to the Closa brand.”
Furthermore, on risks associated with agency banking in the country and how Access Banks moves to mitigate it, she added: “There are four major risks that we have identified. These are technological, legal, and fraud/reputational assets.
“Technological Risk, to prevent software and hardware failures, the bank is investing in new infrastructure with the capacity to absorb service disruptions that will have minimal impact. As part of our onboarding process, the bank’s agents are required to execute a service agreement that stipulates the roles and responsibilities of each party.”
“Also, agents are trained at the point of activation on Anti-Money Laundering (AML) and Terrorism Financing. This training also takes place every year to reiterate the dangers and consequences associated with fraudulent actions.
“Besides, the bank has set a maximum daily limit on the amount and frequency of transactions that can be performed by an agent. Lastly, a quarterly risk profiling exercise is carried out on all agents for effective management,” Ms Iheme added.
Access Bank is the leading retail bank in Nigeria with over 600 branches and more than 40 million customers. The bank offers products and services tailored to suit the lifestyle of every Nigerian irrespective of age and demographic.
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In today’s world, making financial services accessible is fast becoming a key area of concern to policymakers for the well-known reason that it has far-reaching economic implications. To this end, financial inclusion has assumed a greater level of importance due to its perceived relevance as a catalyst for economic growth since it is critical for attaining inclusive growth in an economy.
In 2012, Nigeria took major steps in its journey by launching the National Financial Inclusion Strategy (NFIS). The main goal of the NFIS is to ensure that 80 per cent of Nigerian adults are financially included by 2020. Before this, the formal use of financial services by the adult population stood at 36.3 per cent in 2010. To achieve the 2020 goal, the Central Bank of Nigeria (CBN) introduced strategies to spike innovation in the financial services sector in Nigeria and by 2017, one of the achievements was that the CBN had given over 20 licenses to mobile money operators, which has currently grown to 21.
According to 2018 data from Enhancing Financial Innovation and Access (EFInA), 38.1 million of Nigeria’s 106 million (18 years and above) adults or 36 per cent of Nigerians remain completely financially excluded.
In a recent survey by Agusto & Co on Consumer Digital Banking, only 34 per cent of the respondents said they had experienced the service of digital banks. Only 17 per cent of respondents above the age of 55 are aware of their services, while for people aged 41-54, the awareness rate stood at 31 per cent. This spells the need to deepen the financial inclusion drive if Nigeria is to attain the NFIS target and accelerated economic growth.
The apex bank may have missed the 2020 target of 80 per cent for financial inclusion, but it stands a better chance of meeting the target of 95 per cent by 2024, as industry players have argued that to achieve the NFIS target for inclusive economic growth, the financial sector must strongly leverage technology (mobile and digital channels) to promote financial inclusion and enhance access to financial services for the unbanked and underserved segments of the population.
One of the financial institutions that has continued to leverage technology to revitalize the industry via deploying its huge resources and vast networks to deepen financial inclusion in the country for inclusive economic growth is Heritage Bank Plc, Nigeria’s most innovative banking service provider.
The MD/CEO of Heritage Bank, Ifie Sekibo, affirmed that banks cannot push financial inclusion unless they also push secured technology inclusion.
According to him, Heritage Bank has continued to entrench financial inclusion across the board via creating access to accounts and other financial products, savings, mobile money systems and payment systems that provide opportunities for financially excluded Nigerians and Micro, Small and Medium Enterprises.
Introducing HB API Sandbox & Banking as a service via One Pipe
The bank launched an API Sandbox to accelerate the ideas of technology entrepreneurs to build innovative and commercially viable products that were birthed through HB LAB. This platform provides a suite of financial and non-financial APIs targeted to meet the needs of FinTech, Tech SMEs, and Communities. Our APIs grant tech companies, third-party developers, and non-Fintech companies access to multiple payments and financial services required by their customers.
Following the launch of HB’s API Sandbox, the Bank partnered with API aggregator Companies to extend the bank’s API services to a wider audience, layering their value-added services to deliver our BaaS platform. Banking as a Service (BaaS/Open Banking) is an end-to-end business process that allows FinTech and other third-party service providers to offer core financial services to their customers by integrating with the Bank via our readily available APIs. This is a billed service that also provides relevant data insight required to pursue aggressive retail accounts acquisition by leveraging the aggregator’s robust retail prospect pipeline.
Redefining digital banking space with ‘Octiplus’
Sekibo promised that his bank would continue to drive financial inclusion through a robust, innovative, and advanced digital banking solution, ‘Octiplus’ which it recently launched.
Octiplus is a bank-agnostic, all-in-one digital banking application, which grants users access to a bouquet of financial, lifestyle and social networking features with the added convenience of converging card-based payments within one application irrespective of the issuing Nigerian bank. Ifie Sekibo stated that “with Octiplus, we are redefining the concept of digital banking for the discerning mobile user, as the app is equipped with several exciting features that reiterate the bank’s commitment to expand its digital architecture and modernize its interactions with the banking public, irrespective of your preferred financial institution.”
Octiplus promises an intelligent Omni-channel experience which augments the usual transactional features including bill payment, funds transfer and airtime recharge with its unique ability to facilitate a person to person/group interactions which encourages small businesses and a thriving side hustle for young professionals. The App is now available for download on the Google and iOS App Stores.
Catching them young with HB BUD Account
HB Bud account is a savings account for children and the younger demographic aimed at introducing financial literacy and inclusion. The account can be opened in trust for a child by the parent/guardian who will be the primary account holder with the responsibility of running this account until their child attains adulthood and can solely operate their own accounts or possibly move to other age-appropriate products. This product was initially launched in 2014 as a unique proposition to cater mostly to the educational needs of children and young adults who are preparing and saving up for further education and as well as deepen brand visibility and increase the bank’s market share. However, some operational exigencies and regulatory frameworks have necessitated the modification and adjustment of this product to serve the customers optimally. Children and teens from 0 to 18yrs are the target market.
The features are unique as outlined: Access to cash backed loan by parent/guardian/sponsor for school fees/education loan. You can access up to 70per cent of your balance held with the Bank as cash backed loan. The customer must have run the BUD account for a minimum of 6 months to access the cash backed loan. Ease of saving through standing order instructions. Access to exclusive events. Free participation in the BUD MINI career mentoring and coaching sessions once a year. Opportunity to act as a Heritage Bank Executive Committee member for one day.
Catering for the unbanked via HB Starter Product
This is the bank’s flagship CBN KYC Tier 1 savings account to cater for the unbanked. It is a level 1 entry into the savings account category in Nigeria, in which an individual can open without having the mandatory requirements/documents to open a standard or regular account in Nigeria. This is one way of ensuring that all citizens of Nigeria are financially included since the account can be opened with or without a smartphone at the bank or online. In essence, this type of savings account doesn’t require any utility bills, or even an ID to open.
Most people who fall under this category usually do not see the need to open an account because they find it easier to save whatever money they have in their houses. This category of people wants to avoid the bulky manual account opening process and have better time management. This product is very precise and requires minimum account opening documentation, also it can be done in the comfort of one’s home. Customers can in addition be assisted by the Bank’s relationship managers and sales teams. Also, customers can get on the bank’s website to initiate a new account opening process from start and receive the account number at the end of the process.
Product targeted at individuals across all market segments
This is known as HB Individual Current Account Product, which is a checking account for all individuals across market segments above the age of 18years. This account has been made seamless with unique features for individuals’ access to loan products, a minimum balance of N0.00, No COT on all transactions, an account opening balance of N5,000 and access to a clearing chequebook.
Customization of payment gateway on HB CheckOut and Virtual Accounts
Heritage CheckOut is a fully integrated payment processing platform with infrastructure for digital payments across Africa. Olusola Longe-Okenimkpe, Divisional Head, E-Business & Collections disclosed that the platform provides an underlying technology platform that allows businesses to receive and issue payments from anywhere in the world, with robust inbuilt fraud management, compliance, and security applications.
She also defined Virtual Accounts as a series of off-balance accounts whose total balance mirrors the balance in the pool account. According to Olusola, the pool account is linked to all the virtual accounts and the balance in the pool account mirrors the total balance in the virtual accounts.
Opportunities for financially excluded with HB Business Account
The Heritage Bank Business Account is a cost-effective current account that provides a flexible, affordable, and transparent pricing grid based on the debit monthly turnover covenant. The product is targeted at all Micro and Small Enterprises of SME and Retail segments.
Ensuring seamless transaction using HB transfer code
The transfer code *745# of Heritage bank guarantees seamless usage and reduces the stress of going to the branch of Heritage bank to make a payment. Just like other banks, you can use Heritage Bank’s mobile banking code which is *745# to check your account balance, transfer money to Heritage bank or other banks, pay for utility bills and cable TV subscriptions, and pay for church services everywhere you are using your mobile phone.
Capturing educational sector via Alumni Banking service, Acada Portal Solution
To further capture individuals in the educational sector into the financial inclusion space, Heritage Bank unveiled the Alumni Banking Service and Acada Portal Solution which are internet-based solutions that seamlessly integrate the school’s portal and Alumni platforms that benefit the different stakeholders and complement efforts in attaining the best global practices in school management. Alumni Banking service is an educational provision by Heritage Bank that seeks to utilize and track, engage, endow, and invest in a model to help secondary and tertiary educational institutions create modern alumni systems that contribute to their financial stability just like great alumni do in the best global schools.
Inclusion of creative industry, e-sport gaming on HB YNSPYRE Account
YNSPYRE Account is a product targeted specifically at the creative economy populated by not only youths in video and film, and music. It goes much more than that as it involves people in technology, the creative industry and gaming as part of the creative industry.
Addressing the press about the initiative in gaming as a creative endeavour, Dike Dimiri, Heritage Bank Regional Executive, Lagos, and South-West explained that the involvement of the bank is to identify income-earning opportunities for some people in the economy.
According to him, “HB has designed a product that identifies and finds a mechanism that guides Nigerians in gaming or e-sports. The bank is set to revolutionize e-sports by bringing it to an acceptable level attained by football, lawn tennis and other crowd pulling games.”
Heritage Bank is fast changing the narratives of the banking landscape through the adoption of more secured technology (product and channels) for seamless services that guarantee the larger part of the population is involved in economic activities as well as being financially included.
For this to be effective, Sekibo affirmed that the population must access financial services and products which ensure that households and businesses irrespective of income levels have access to and can effectively use the appropriate financial facilities they need to improve their lives and further their savings and investments.
Stanbic IBTC continued to champion the job creation drive in Nigeria through initiatives such as its graduate trainee programme and various entrepreneurial programmes, which had created job opportunities for Nigerians.
Dr Demola Sogunle, Chief Executive, Stanbic IBTC Holdings PLC commented on the financial institutions’ role as a job provider in Nigeria. He said the financial services provider was always at the forefront in bridging Nigeria’s unemployment deficit through its various programmes and provided necessary tools for its graduands to navigate through the 21st-century job environment.
“As a financial institution that placed much value on job creation, Stanbic IBTC continued to provide various employment opportunities geared at bridging the nation’s unemployment gap. Through our various graduate trainee programmes, we had ushered successful candidates out of the despair of unemployment and economic instability. Unemployment figure released by the National Bureau of Statistics was quite high, at 33.3 per cent,” Demola said.
“Graduates under our trainee programmes were exposed to seasoned subject experts in artificial intelligence and machine learning, financial management, data, cloud and blockchain technology. Stanbic IBTC has enabled numerous graduates to be prepared for the future,” he added.
The Chief Executive noted that Stanbic IBTC would continue to provide opportunities for Nigerians to achieve their dreams and contribute to bridging the nation’s unemployment deficit.
“At Stanbic IBTC, we strongly believe in the dreams and aspirations of every Nigerian and we remain committed to providing avenues for fulfilling these aspirations,” Demola said.
Funke Amobi, Country Head, People and Culture, Stanbic IBTC Holdings PLC commented on the role Stanbic IBTC played in bridging Nigeria’s unemployment deficit. She said the financial services provider had taken the lead to provide job opportunities for Nigerian youths despite the economic challenges that plagued business organisations.
“The importance of job opportunities cannot be overemphasised in Nigeria. As a corporate entity, we have lived up to these responsibilities, and have provided opportunities to Nigerians through our trainee programmes. Also, our entrepreneurial programmes are geared at equipping beneficiaries with the required skills to run successful businesses, thus enhancing employment generation. ,” Funke said.
She further assured Nigerians that the organisation would continue to provide opportunities for citizens to achieve their aspirations.
If you need to receive money from abroad, Payoneer is one of the best ways to do so. Payoneer is a financial technology company that enables individuals and businesses to work together.
The company provides an online platform for companies and individuals to receive funds from international sources in one’s local bank accounts like Fibo.
This article will go through the steps on how to receive funds from abroad via Payoneer and link your account with a local bank.
Payoneer allows people to pay money abroad in an easy way. With Payoneer, people with no knowledge of local banking systems or currencies can send and receive money internationally with ease; there’s even data analytics that provides businesses insights into their payment trends and figures.
You can also deposit funds into your local bank accounts, making it more convenient for business owners. Payoneer can be used in many different ways, such as paying freelancers, outsourcing projects to contractors, etc.
There are many benefits to using Payoneer, from saving money to receiving payment faster from anywhere. Payoneer is available to both professionals and non-professionals. For example, if you are a freelancer, it will be easy to receive funds through Payoneer. There are also other benefits listed below.
There are a lot of banks to choose from. Your account is linked with your Payoneer account, so you’ll be able to transfer funds across any local bank within the supported countries. Payoneer will only send funds to your local bank account, and then you can withdraw the funds via an ATM card.
These are the steps to follow to receive funds to your local bank account:
Go to the Bank Digital app and log into your Payoneer account.
Go to the main page of your bank account, then select “Account Settings.” On this screen, you’ll be able to link your Payoneer account. Click on “Connect Bank Account,” and you’ll be able to give the bank access to your Payoneer account.
Withdrawing funds to your Payoneer account is very easy. It will only require a few minutes, and your funds will be transferred directly to your local bank account. After this, it’s important to know how much foreign currency you want to withdraw from Payoneer so the transfer can be made successfully.
Once you’ve specified the amount of foreign currency you want to withdraw from Payoneer, click on ‘withdraw.’ This will convert your funds in Payoneer to Nigerian Naira (NGN) and will show up in your bank account.
Once your funds are converted to Naira, you can now withdraw the funds via your bank debit card. You can also use your bank debit card to withdraw local currency at local merchants or ATMs.
Using Payoneer is one of the easiest ways to receive funds from abroad. You can link your local bank account and transfer money directly into your bank account. By doing this, you’ll receive your money quickly and will not have to go through the hassle of another currency exchange service that is available in Nigeria.
Payoneer has a great platform that allows users to monitor their transactions, and receive and transfer funds at any time. If users work in online startups, online freelancing, or business projects, then trying this system would be an excellent decision.