By Stanley Opara

Monday, 20 Dec 2010

Finance experts in Nigeria have commended the planned introduction of branchless banking in Nigeria by 3Line Card Management in partnership with some Nigerian banks.

The company is set to unveil light banking services, which will be referred to as ”Street Banking”, and will include sets of transactions such as cash withdrawal, fund transfer and fund load to the under-served and unbanked group.

The General Manager, 3Line, Mrs. Funke Ade-Ojo, however, said that the pre-requisite condition for the take-off of this model was a well organised cash agent network, which would work in tandem with regulations that were applicable in the financial sector with a secure cash management solution.

Ade-Ojo spoke at a financial services technology forum hosted by the industry umbrella body, e-Payment Providers Association of Nigeria, with the broad theme, “Exploring Card to Capture the Bottom of the Pyramid.” In her presentation, “Financial Freedom for the Masses”, she advocated that the cooperation model of branchless banking, using third party agent networks, would be an assured means of reaching the unbanked.

She maintained that cards and Point of Sales terminals with the potential for mobile money collaboration in future was the ”Holy Grail for mass financial access to the unbanked communities in Nigeria.”

The 3Line boss commended the Central Bank of Nigeria for its visionary role in creating an enabling environment for the initiative by granting the company the approval to roll out its branchless banking products.

Ade-Ojo added that 3Line was building a branchless banking agent network called the ‘Freedom Network‘ that would enable financial institutions in the country to provide light banking and insurance services to the bottom of the pyramid at a fraction of the current industry cost.

She said, since branchless banking services were an integral part of the company‘s vision to champion inclusive financial services in the country, the company had recently collaborated with FinBank to take FlashWallet Card to the market.

According to her, customers of FinBank who operate FlashMeCash can now use their FlashWallet cards at over 8,000 ATM points in Nigeria.

The Managing Director/Chief Executive Officer, Nextzon Business Services, Mr. Mac Atasie, however, defined BoP as the largest yet poorest socio-economic group, typically living on less than N500 per day in Nigeria.

He, therefore, commended 3Line‘s initiative of bringing BoP into the financial services system.

According to him, the market estimate for cards business amongst the BoP is huge and should not be ignored. ”These are the low income professionals such as government workers, teachers, post office workers and the petty traders,” he said.

Others in this category are the artisans, students, drivers, and other unskilled labourers.

Source: Punch