The Nation Newspaper

Tag: EFInA

  • EFInA gives $1.5m to support mobile banking

    Enhancing Financial Innovation & Access (EFInA) has awarded $1.5 million or about N421.5 million from its Innovation Grant to support Diamond Bank’s Diamond Y’ello Account (DYA), a mobile banking platform, which was built on MTN Xaas platform.

    The DYA was built on a platform powered by CWG Plc. It was designed to enable MTN subscribers, which include the largely unbanked and under-banked populace in Nigeria, enjoy banking services from Diamond Bank, using their mobile phones within the convenience of their varying locations. It provides easy access to a broad range of financial products tailored to meet consumers’ needs, at an affordable cost. These include bills payment, savings, retail collections, microcredit and insurance transactions

    On the development, Mr James Agada, Chief Executive Officer, CWG Plc observed that the DYA has demonstrated significant prospects, hence no surprise on the investment by EFInA.

    According to him, within a period of a little over 12 months, the Diamond Yello Account has enabled over 6 million subscriber’s access banking services with ease. The EFInA grant shows that these giant strides are being recognised and this will challenge us at CWG to do more in deploying technology solutions that enable growth.

    The Innovation Grant, as released by EFInA to support the DYA; ‘Winning the North’ project, is intended to enhance financial inclusion to the unbanked in the Northeast and Northwest geopolitical zones, who have more financially excluded citizens than other parts of the nation, as referenced in the EFInA Access Financial services in Nigeria 2014 survey. Furthermore, it is anticipated that this project will aid in tilting the variances in the financial sector; enabling the operators an opportunity to upgrade the features of the DYA in order to allow customers do more and cover a broader geographical base.

    It should be noted that CWG has worked in partnerships with other banks in the past, deploying innovative technology based products that enable customers’ access financial and other value added services through their mobile phones.

    CWG  has also deployed the Finacle Banking Application to 60 per cent of the financial institutions, enhancing their operations and currently deploys about a third of the aggregate ATMs presently in the country.

  • EFInA backs Lotus Capital with $250,000 grant

    The Enhancing Financial Innovation & Access (EFInA) has given a technical assistance grant of $250,000 to Lotus Capital Limited, to support the “Lotus Health is Wealth Savings Plan”.

    EFInA is a financial sector development organisation that promotes financial inclusion in Nigeria. Lotus Capital Limited is the pioneer provider of non-interest financial services in Nigeria. The company provides a broad spectrum of fund/portfolio management services for individual, corporate and retail clients.

    The Lotus Health is Wealth Savings Plan (LHIWSP) is a dynamic non-interest, fixed income savings product that will also offer health insurance. The plan is structured around monthly collections of deposits from customers which will be invested in non-interest, low-risk instruments, and non-interest fixed term investments to give customers returns on their savings. A small portion of customers’ deposits will be allocated to pay the monthly premiums for health insurance. The project will be piloted in Lagos, Abuja and Kano States. Lotus Capital will target traders, market associations, religious associations, service companies and women pressure groups.

    Speaking about the Grant, the Chief Executive Officer of EFInA, Chidinma Lawanson, stated that, “The EFInA Access to Financial Services in Nigeria 2014 survey revealed that 16.8 million adults representing 18 per cent of the adult population who do not use non-interest banking products stated that they are likely to take up such products if they are readily available.

    Managing Director of Lotus Capital, Hajara Adeola said: “Since our founding, we have being dedicated to creating wealth ethically for our clients. Our firm belief is that with the right financial plan and education, everyone can and should improve the quality of their life. Through this project, we hope to encourage the development of an investment culture among the low income and financially excluded segment of the population”.

  • Framework on agency banking coming

    A framework that will define the mode of operation for agency banking would be out before year end, The Nation has learnt.

    Speaking at the Enhancing Financial Innovation and Access (EFInA) forum in Lagos, Central Bank of Nigeria (CBN) Governor, Sanusi Lamido Sanusi said the CBN Committee of Governors was fine-tuning the draft exposure of the agency banking.

    He said issues relating to some agents, type and nature of agents including considerations for super agents are critical areas being considered in the draft exposure.

    He said the processes for this line of banking to become functional will be finalised by this year-end.

    Sanusi said there have been improvements in the payment system, including the drive for financial inclusion.

    He said lenders have to address the need for special products that consider women and the handicapped to ensure that everyone is carried along.

    Sanusi said agency banking provides financial services to the widely dispersed population at affordable price and has assisted some countries in decongesting existing customers from crowded branches.

    He added that it would serve the same purpose in Nigeria.

    According to him, agency banking provides financial services by a third-party agent to customers on behalf of a licenced, prudentially-regulated financial institution.

  • ‘Financially excluded adults to drop to 20% by 2020

    THE number of adults excluded from the finanacially system would drop to 20 per cent by 2020, Chief Executive Officer, Enhancing Financial Innovation & Access (EFInA), Ms. Modupe Ladipo, has said.

    At the moment, no fewer than 34.9million Nigerians, representing 39.7 per cent are excluded from financial services.

    Unveiling the results from the EFInA Access to Financial Services in Nigeria’s survey, he said between 2008 and 2012, the number of adults that are financially excluded decreased by 10.5 million.

    She explained that the report was meant to measure trends in access and use of financial services in the country and to establish credible benchmarks and indicators of financial penetration in the country.

    According to her, financial inclusion is the provision of high quality financial products, such as savings, credit, insurance, payments and pensions, which are relevant, appropriate and affordable for the entire adult population, especially the low income segment.

    “An inclusive financial sector is characterised by the diversity of financial services products and providers, the level of competition between them, and the legal and regulatory environment that ensures the integrity of the financial sector and access to financial services for all,” she said.

    The absence of relevant and reliable data and analysis on how individuals and households manage their finances was one of the biggest hurdles to improving access to financial services in Nigeria.

    CBN Governor, Sanusi Lamido Sanusi in his address entitled: Overview of the national financial inclusion strategy and the role of banks in promoting financial inclusion in Nigeria, said, there has been some improvement in the move to drive financial inclusion in the country.

  • Why co-operatives are weak, by group

    Limited systematic data on the co-operative sector is hindering effective engagement with the segment, Enhancing Financial Innovation & Access (EFInA) has said.

    EFInA, which promotes financial inclusion in the country, said it was difficult to determine the optimal strategy for expanding financial services through co-operatives based on a survey it conducted.

    The firm had undertaken a study of the sector in Enugu, Kebbi and Oyo states. Findings from the survey showed they were disseminated and discussed by panelists and participants from co-operative groups, traditional co-operatives are common throughout the country, but these groups tend to be small, with a common bond based on membership of a kinship, societal and/or professional group.

    According to the Federal Department of Co-operatives, as at 2010, there were over 80,000 co-operative groups with over 1.4 million members in 605 local government areas in the country. The EFInA Access to Financial Services in Nigeria 2010 survey also revealed that almost 21.9 million Nigerian adults used informal groups including co-operatives while 14.8 million rely on the sector as their only means of access to financial services.

    Chief Executive Officer, EFInA, Ms. Modupe Ladipo, said: ”There is a core and dedicated following of co-operatives in Enugu, Kebbi and Oyo states, which is probably also replicated across Nigeria. Members regularly save and have a real demand for loans.

    “Our data revealed that the 700 members interviewed in these three states saved over N243 million annually; and that the 150 managers interviewed, managed a loan portfolio of N122 million. Therefore, there is a significant potential for co-operatives to make a bigger impact amongst those who are un-banked or under-served. If optimised, co-operatives can be a force in empowering rural communities, farmers, women and micro entrepreneurs throughout Nigeria.”

    Minister of Co-operative Development and Marketing, Kenya, Mr Joseph Nyagah and Dean, Faculty of Co-operative and Community Development, Moshi University College of Co-operatives and Business Studies (MUCCoBS), Tanzania Mr Christian Malamsha, agreed with her.

    Nyagah shared insights on how effective regulations can support the growth and development of co-operatives and maximise their impact on financial inclusion. “Kenya’s Savings and Credit Cooperative (SACCO) is the most dynamic and largest in Africa. At the end of 2011, there were 14,126 registered co-operatives – serving over 10 million members in Kenya,” he said.

    He reiterated the need for government to create a conducive environment for growth and development of co-operatives through effective policies, overseeing development and administration of co-operative legislation and regulations.

    “Co-operatives remain important in providing access to finance, and in particular credit to low income individuals given the rising cost of lending by banks,” he said.

    Malamsha, on his part, said co-operative can strengthen the competence of co-operatives and their managers, which would assist in accelerating the uptake of formal financial products in the co-operative sector.

    “Co-operative colleges should identify, develop and review programmes continuously, to ensure that the training needs of co-operatives are met,” he said.