Exploring tools to drive financial inclusion at retail banking workshop

The Central Bank of Nigeria (CBN) is currently implementing various policies and processes designed to enhance financial inclusion. In October 23, 2012, the CBN in collaboration with stakeholders launched the National Financial Inclusion Strategy, aimed at further reducing the exclusion rate to 20 percent by 2020.

According to the Apex Bank the major tools for driving the Strategy include agent banking, tiered Know-Your-Customer requirements, financial Literacy, consumer protection linkage banking implementation of the Micro Small and Medium Enterprises (MSME) Development Fund, credit enhancement programmes such as, Agricultural Credit Guarantee Scheme (ACGS), Commercial Agricultural Credit Scheme (CACS), Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), Refinancing and Rediscounting Facilities for SMEs, Small and Medium Enterprise Credit Guarantee Scheme, Entrepreneurship Development Centres.

The Financial Stability Report for second half of 2016 revealed that the banks had implemented the tiered KYC initiative, leading to an increase in the number of previously unbanked individuals drawn to the banking sector. The report also stated that 11 banks designed innovative financial products and services for underprivileged groups.

However, the Enhancing Financial Innovation and Access (EFInA) ‘Access to Financial Services in Nigeria’ 2016 survey report puts Nigeria’s banked population at 38.3 percent of adults while 41.6 percent are financially excluded. Its ‘The Landscape of Financial Inclusion and Microfinance in Nigeria’ 2015 survey report identifies five major barriers to financial inclusion, which are low income; low physical access to rural areas lack of trust and clear understanding of financial institutions and products; affordability; and eligibility.

The 2nd Edition of Ciuci Consulting’s Retail Banking Workshop themed, ‘Catalyzing SME Funding and Retail Lending to Nigeria’s Economic Development,’ will explore the strategic tools employed to drive Financial Inclusion. This edition will hold at Radisson Blue, Victoria Island on Thursday, 15th June, 2017.

Since 2005, the Nigerian government and the regulatory authorities have promoted policies intended to grow financial inclusion in the Nigerian financial services sector.

The CBN has been at the forefront of supporting these products that are specifically targeted at the low income and financially excluded, using the Financial System Strategy 2020 (FSS2020Other frameworks and policies include: Non-interest Banking framework (NIFIs), E-banking Products, Electronic Payment System, and Cashless Policy.

With this, financial institutions in Nigeria have responded well to CBN’s call forincreased financial inclusion. CBN, to be represented by the Head of Financial Inclusion, Temitope Akin-Fadeyi, will be speaking to the industry at this workshop, highlighting the status of financial inclusion and credit enhancement programs for retail banks in the industry.

 

HOPE MOSES-ASHIKE