By Ademola Alawiye

As financial authorities intensify the shift towards a cashless economy in the country, some Deposit Money Banks have concluded plans to increase their minimum account opening balances.

An investigation by our correspondent revealed that though only one of the banks had publicly announced its plans to increase its opening balance, some others were in the process of finalising their plans.

Some of the banks, according to findings, are increasing the amount that can be used to open an account so as to have access to enough funds for other businesses.

It was also gathered that the banks were increasing their opening balances because of huge increase in their customer bases.

Already, First Bank of Nigeria Plc has informed its customers that with effect from September 1, 2011, the required opening balance for savings account holders will be N10,000, while the minimum balance will be N2,000.

Our correspondent gathered from an official of the bank that the idea was to increase the usage of alternative channels and also to enable it render excellent services to its customers.

The official, who craved anonymity because he was not permitted to speak on the matter officially, added, “It is true that the bank is increasing the opening and minimum balances to N10,000 and N2,000 respectively from September, but it is in a bid to increase the services we offer to our customers. As you can see, the minimum balance can still be afforded by the low-income earners.”

Findings show that Zenith Bank Plc and Guaranty Trust Bank Plc had earlier increased their opening balances.

A customer care officer of Zenith Bank told our correspondent that an individual could not open savings or current accounts with less than N25,000 now.

“To open an account in any Zenith Bank branch nationwide, you need at least N25,000. The opening balance is the amount you need to open the account. It is not the same as the minimum balance, the minimum balance is the amount you need to leave in the account at any point in time,” the officer, who begged not to be mentioned, said.

Some customers, who spoke to our correspondent in separate interviews, however, faulted the move, saying it was not customer friendly.

“If truly they want to improve services to customers, they should increase the interest on deposits rather than increase opening balance,” a customer of one of the banks, Mr. Nelson Isiakpona, said.

The United Bank for Africa Plc had earlier announced that it would increase its minimum opening balance to N25,000 with effect from July 1, 2011.

The bank had said in a notice, “Dear esteemed customers, please be informed that, with immediate effect, the new minimum opening balance for savings and current account is N25,000.

“Meanwhile, all existing customers of the bank are, therefore, advised to increase their savings and current account balances to N25,000 minimum, on or before July 1, 2011. Thank you for banking with UBA.”

The bank later postponed the take-off date of the new minimum balance to September 1, 2011.

An independent, professional and non-profit organisation conceived by the United Kingdom’s Department for International Development, Enhancing Financial Innovation and Access, had said that 79 per cent of Nigeria’s adult population were un-banked.

Source: Punch