In June, EFInA hosted its first Retail banking strategy breakfast series to evaluate the market opportunities for retail banking in Nigeria and to discuss how financial inclusion can promote economic development and wealth creation.

The roundtable discussion was designed to assess how some of the recent Central Bank of Nigeria policies on remittances, withdrawal limits and mobile payments could support the development of payment systems and increase financial inclusion in Nigeria.

The breakfast was attended by Heads of Retail Banking and Strategy from Deposit Money Banks. Participants highlighted issues such as the lack of a uniform national identification system, onerous KYC requirements, high cost of doing business, requirement for effective risk management and the dearth of skilled human capital as challenges to developing an inclusive retail banking industry in Nigeria.

Speaking at the event, Modupe Ladipo, Chief Executive Officer of EFInA said, “Given the large numbers of the unbanked population, new ways of thinking and innovation in bank products and services will be required to capture this market.” Participants examined how alternative channels such as mobile phones, point-of-sale (POS) devices and agent banking can support and further the financial inclusion agenda.

Ms. Ladipo further stated that, “To motivate customers to save in a formal financial institution, providers need to develop products and services to meet their financial needs. These products should mimic those offered by informal savings providers such as ‘esusu’ or ‘ajo’ and be distributed through non-bank branch channels such as mobile phones and POS devices. Typically, savings products serve as an entry point to other financial products.”

“EFInA will continue to host these breakfast series and innovation fora to build the capacity of market operators and regulators in the financial services sector. Through our Innovation Fund we will support the development of new ideas and approaches to expanding access to formal financial products and services targeted at the unbanked and under-banked population in Nigeria.” said Yewande Adewusi, Programme Manager, EFInA.

The breakfast series will help to ensure that EFInA’s advocacy, research and innovation funding activities are designed to meet the needs of the retail banking sector in Nigeria.