29 total views, no views today
Adesola Adeduntan, CEO of one of sub-Saharan Africa’s oldest and largest private sector banking groups, reviews the dominant trends of the sector in Nigeria and the wider West African region and discusses the relationship between the banking industry and the increasing number of telcos which are providing alternative financial services. Interview by Rafiq Raji.
How do you think Nigerian banks would respond to telcos’ imminent foray into mobile money?
I would like to note that the imminent foray of telcos [telecommunication companies] into mobile money is being driven by the Central Bank of Nigeria’s focus on deepening the financial services sector by promoting financial inclusion and enhancing access to financial services for the low-income earners and unbanked customer segment.
The recently released guidelines for the licensing and regulation of Payment Service Banks by the Central Bank of Nigeria provides the required regulatory platform for the participation of new players (telcos, banking agents, retail chains, postal services providers, existing mobile money operators, FinTechs, and financial holding companies) in the provision of banking services to individuals and small businesses.
Of all the potential categories of new entrants or players, the telcos are better positioned to make significant competitive impact in the industry given their existing advantage with respect to investment in technology/digital infrastructure and access to target customer information/data.
As telcos prepare to join banking industry incumbents in the provision of financial services to individuals and small businesses, the incumbent banks may potentially respond in either of two ways:
[1.] Compete: Recall that prior to the release of the guidelines for the licensing and regulation of Payment Service Banks, most Nigerian Banks had already embarked on the rollout of the Agent Banking and Unstructured Supplementary Service Data (USSD) Banking service … Read More...