Keystone Bank recounts cashless policy success, calls for PoS education

Keystone Bank Limited has said that the cashless policy of the Central Bank of Nigeria (CBN) has gathered momentum and running at full speed, except in the area of Point of Sales (PoS) that needs more education.

In his assessment of the cashless policy at a media parley in Lagos, Philip Ikeazor, managing director and chief executive, of the bank, noted that given what happened to the Nigerian economy prior to the cashless policy, the country had come a long way.

However, the only area that financial services providers should do more is in the education on PoS uptake, he said, saying it is only in the PoS that the market is slow in understanding the cashless policy.

He said: “I don’t have the statistics here. But if you see the volume of cash that goes through Automated Teller Machines (ATMs) and the volume of cash that goes through internet transfer alone, it shows that banks have improved in the country in terms of efficiency of transfers and cost reduction.

“We should understand that before the advent of Internet banking and the advent of using ATM cards, we carried around huge cash with the inefficiency that comes with it. But, today that story is different. All that our customers require from us is to ensure that our channels work.

“Banks have done very well in terms of Internet transfer, so have we (at Keystone Bank). Banks have also done very well in terms of providing ATMs. The only place that the cashless policy requires education is the uptake of PoS machines.”

Nigeria still has a long way to go in the cashless policy when compared with her counterparts abroad, he noted, saying further that “we have not reached anywhere in terms of what we have abroad. If we can get to that level, then we can get to the stage where PoS machines that can be used to send details and the money goes straight into his account.

“So, the impact of cashless policy will greatly enhance business in Nigeria. We (banks) are supporting it and we are investing heavily in it. We have classified ourselves into tier 1, tier 2, and tier 3 for those that have over one 1000 PoS and above. Keystone has over 384 PoS, so, it is a policy we support; it is a policy that is assisting Keystone Bank. It is the bedrock of our strategic growth.”

The benefits of the cashless policy are being reaped through reduction of cash, crime and insecurity. The policy has brought a simple, more convenient and easier way to conduct business transactions.

The apex had announced its cashless policy in 2011 and commenced its implementation through a pilot test in Lagos state in 2012. The success of the pilot test, led to the implementation in other cities such as Abuja, Port Harcourt among others before the nationwide rollout on July 1, 2014.

The consensus is that, the banks shall continue their education of their customers, as they carry out market storms and exhibitions, through SMS messages, advertising and other ways they can reach out to their rural population.

HOPE MOSES-ASHIKE