FINCA launches Nigeria’s first microfinance agency banking

FINCA Micrifinance Bank Nigeria has launched what would come off as Nigeria’s first successful agency banking model at the microfinance level. The event took place last week in Owerri, Imo State, where the bank began its Nigeria operations.

Known as ‘FINCA eXpress,’ which got the approval of the Central Bank of Nigeria (CBN), FINCA Microfinance Bank Nigeria, which is a part of a global FINCA microfinance network, began operations in Nigeria over a year ago (December 2014), and now serves 16,000 active clients through its branches in Owerri – Imo State.

Globally the Mfb serves nearly 2 million clients in 23 countries in Africa, Asia, Latin America and Europe.

Agency banking is the provision of financial services to customers by a third party (agent) on behalf of a licensed deposit taking financial institution – bank.

According Phillip Takyi, the chief executive officer of FINCA Mfb Nigeria, within the FINCA network, FINCA eXpress was first introduced in its subsidiary in the Democratic Republic of Congo in 2011, followed by Zambia and Tanzania in 2015, in two subsidiaries. Today, he informed that FINCA has over 600 agents across Africa.

The agent banking model in Owerri, which began with three pilot agents: Chioma Nwokocha (Pearl Bridal Co.), Patrick Nwiru (Float Expertech Ventures and Ifeoma Thaddeus of Taddy G. Ventures, is starting in partnership with Enhancing Financial Innovation & Access (EFInA), a UK DFID funded financial sector development organization that promotes financial inclusion in Nigeria, and MasterCard Worldwide.

Takyi said, “in Nigeria, it is a requirement by banks for customers to provide valid formal identification, pay monthly account maintenance and transaction charges, and pay for accessibility through issuance of bank card. These requirements have created a lot of barriers for 56% of adults in Nigeria.

“With the support of EFInA and MasterCard Worldwide, FINCA is removing these barriers to access to financial services,” he stated.

The FINCA CEO informed that with FINCA eXpress, customers of the bank would have unlimited access to their account – ability to withdraw, make deposits, repay their loans, make transfers from their FINCA account to another FINCA account, print their statement and check their account balance without pay for any of these services or leaving their businesses.

He informed that FINCA has made great strides in the past year, reaching more people with critical financial services – now has 16,000 clients, mobilized over N200 million in voluntary savings – while clients have accessed over N1.550 billion in loans.

Sarah Makka, of EFInA Nigeria said the agency, created in 2007, was encouraged to support FINCA in the agency banking; adding that EFInA had been at the forefront of financial inclusion of more unbanked Nigerians.

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