We’re about to witness the death of corporate banking in Nigeria and the current cash crunch is a strong indication that it is every bit of possible that it’s what we’re witnessing today.
A thread🧵…
A thread🧵…
In 2010 while working as a Market Data manager and Senior Software Developer at Exchange Data Systems, a branch of ITEX Integrated Services saddled with the job of selling stock market data for The Nigerian Stock Exchange…
I was sponsored by the company as one of the recipients of the digital payment initiative certification from Emmanuel Okeogwale’s Mobile Money Africa which was supposed to usher in the cashless policy of the CBN. After many sessions in which we looked at…
The framework for shared agency banking services in Nigeria, I and my colleagues from within and outside Nigeria came to a unanimous conclusion about the impact of the agent banking network system. The conclusion being that if this works, banks will become extinct…
I had an argument subsequently with the then marketing manager of the first bank branch at the ground floor of the exchange at customs street and in that argument I told her that if they continue with these epileptic services, agency banking…
would eventually make deposit money banks extinct. In a defiant tone she said “that can never happen”. Today, as we’re slowly witnessing the decimation of cash and the attendant difficulties of procuring same, Nigerians are unconsciously switching to electronic means…
to access cash. It’s been 13 good years since I had that discussion with the lovely lady at the bank and at some point I tried convincing myself that the projection we made at the Mobile Money Training was a bit off or would never happen at all. Surprisingly, the…
CBN has noticed that continuing to manage the large volumes of cash in circulation was becoming a problem. The government decided to latch onto the cashless initiative as a buffer for the cash deficiency. Today, as a result of the scarcity of cash, Nigerians are now resorting…
to electronic banking services. We see that banks nationwide are shutting its doors during working hours but are trying to function behind closed doors. I thought about it asked myself, is it not that Nigerian banks are slowly adopting virtual channels as an alternative?…
This points to the possibility of the banks silently adopting virtual banking services. Who knows how long this will last but what it portends is that the banks will never be the same after this. I believe that with increased tele-density in Nigeria the banks…
will realize that this is the way to go. If we are able to make this shift it means that the mobile money initiative has gotten an alibi and is here to stay. The use of POS services and USSD code for transactions is proof that it is working. Soon anyone with any kind of phone…
will enjoy financial inclusion even in the remotest part of the country. The Mobile Money experts advised the banks to adopt it back in 2010 so that they can maximize their operating costs but because the initiative would bolster the MNO’s (Mobile Network Operators) to be the…
major player in the financial services ecosystem the banks frowned at it. Now, the tides of the times have made this shift inevitable. I hope the banks will look beyond the inertia to enable agents and then shut its doors to the public while the shared agent banking network…
takes over. With this we will reach the rural dwellers and deliver financial services to them. Nigeria’s underutilized Internet bandwidth potential will be further exploited and then regulations for financial services will be better implemented. So it will be a win win…
Vote #ObiDatti2023 for a better 🇳🇬
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