NIBSS - The Evolution to the Future Cash-less Nigeria

Transcription

1 NIBSS - The Evolution to the Future Cash-less Nigeria Using Mobile Money to Increase the Effectiveness of the Cash-less Policy November 21, 2013 Modupe Ladipo Chief Executive Officer, EFInA

2 About EFInA

3 3 About EFInA Financial sector development organisation promoting financial inclusion funded by DFID and Bill & Melinda Gates Foundation Vision Leader in facilitating an all-inclusive and growth-promoting financial system Pillars Research Innovation Advocacy Capacity building How We Work

4 Key Insights from the EFInA Access to Financial Services in Nigeria 2012 survey

5 5 About the EFInA Access to Financial Services in Nigeria Surveys Nationally representative of all adults (18+) across all 36 states plus FCT Abuja Survey has been conducted three times, in 2008, 2010 and 2012 Relevant and reliable data on the demand for and usage of a range of financial products, both formal and informal Objectives Methodology in 2012 Input to evidence-based financial inclusion policies & reform Provide credible benchmarks & indicators Highlight financial access trends over time Analyse the market opportunity for the unbanked & low income segment The questionnaire was translated into and administered in Hausa, Yoruba, Igbo and Pidgin English Sample design and household listing was conducted by the National Bureau of Statistics (NBS) Fieldwork was conducted from July to September 2012 by AC Nielsen Nigeria Limited Results were weighted by the NBS at three levels (Enumeration Area, Household and Adults) to provide the total adult population. This was also benchmarked to national population estimates for verification 5 Coverage in ,841 questionnaires were completed

6 Frequency of Types of Payments Undertaken by Customers Bank customers most frequently make cash withdrawals and cash deposits Most people do not use cheque deposits, bill payments, electronic bank transfers and loan repayments Cash withdrawals Cash deposits 31.8% 25.4% 33.3% 9.5% 27.2% 20.8% 36.1% 16.0% Three or more per month Two per month One per month None Cheque deposits Bill payments Electronic bank transfer Loan repayments 4.2% 3.5% 7.3% 1.7% 1.2% 4.4% 3.5% 1.5% 2.6% 2.0% 0.4% 2.9% 85.0% 92.7% 92.4% 94.7% Source: EFInA Access to Financial Services in Nigeria 2012 survey 6

7 Channels Used for Financial Transactions Bank branches: 93.7% of adults who have a bank product, conduct their transactions at the bank It is the most important channel for 57.9% of banked adults ATMs: 60.2% of adults who have a bank product, use ATMs for transactions 41.2% of banked adults stated that ATMs are their most important channel Mobile phones/pos machines Transactions through mobile phones and POS machines are still extremely low Channels used for financial transactions % of adults who have a bank product Bank branch 93.7% ATM 60.2% Mobile phone 2.4% Internet 0.9% POS machine 0.8% Most important channels for financial transactions % of adults who have a bank product Bank branch 57.9% ATM 41.2% Mobile phone 0.4% Internet 0.4% Source: EFInA Access to Financial Services in Nigeria 2012 survey POS machine 0.1% 7

8 C. Why Mobile Money?

9 Total Financial Access Service Points Per State Total Number of Access Points = 16,536: Deposit Money Banks (5,765) Mobile Money Agents (4,225) Motor Parks (2,512) Microfinance Banks (1,170) Post Offices (938) Co-operatives (937) Off-Site ATMs (780) Microfinance Institutions (209) Source: Brand Fusion/SpatialDev, April

10 Ownership of Mobile Phones by State CBN s Cash-less Policy States Source: EFInA Access to Financial Services in Nigeria 2012 survey 10

11 Opportunities for Deepening Mobile Money 29.8million adults own a mobile phone and are unbanked 56.3million adults own a mobile phone 48.1million adults could be encouraged to use mobile money Top factors that would encourage non-users of mobile money: 15.0million adults would consider using their mobile phones to send money 9.4million adults would consider using their mobile phones to save money 14.1million adults would consider using their mobile phones to receive money Understanding how mobile money works Having a mobile money agent close to their home/place of work Feeling mobile money is safe When many people start using mobile money Source: EFInA Access to Financial Services in Nigeria 2012 survey 11

12 Preliminary Findings from the EFInA Mobile Money and E-Payment Channels Usage Survey

13 13 About the EFInA Mobile Money and E-Payment Channels Usage Survey Objectives Evaluate the awareness and usage of mobile money and other e-payment channels in the cash-less phase II states + Bornu state Evaluate the awareness of the cash-less policy in the cash-less phase II states + Bornu state Target Customers, Mobile Money Agents and Merchants Methodology Primary & Secondary Research Primary Research: Quantitative (in each location) - face to face interviews with 250 customers (150 urban and 100 rural), 35 mobile money agents and 35 merchants Qualitative (in each location) - 4 FGDs (2 urban and 2 rural) for customers; 5 IDIs with mobile money agents and 5 IDIs with merchants Fieldwork was conducted between 1 st and 11 th of October 2013 by NOI Polls 13 Locations 7 locations - Abia, Anambra, Bornu, Kano, Ogun and Rivers states, plus FCT

14 Preliminary Findings from the Quantitative Research of the Mobile Money Survey Mobile Money 43% of customers interviewed have heard about mobile money 27% of customers have knowledge of mobile money operators Only 7% of customers currently use mobile money Issues that dissuade customers from using mobile money (for those that have not used mobile money services): 35% said they don t know how to use it 26% said that they were not aware of it 21% said they have not come across it 16% said they did not want to use it What can be done to encourage the adoption and usage of mobile money (from the perspective of mobile money agents): Create significant awareness and enlightenment (57%) Make it fast, convenient, affordable, safe and reliable (21%) Stabilise the GSM network (9%) Reduce transaction costs (6%) Source: EFInA Mobile Money and E-Payment Channels Usage survey 14

15 15 Key Recommendations Create effective awareness campaigns in different local languages, especially targeted at the grass roots, using multiple channels Enforce the use of e-payment channels for large vendors, e.g. WAEC could mandate that all students pay their School Certificate Examination fees using mobile money Incentives such as reward schemes can be given to customers who use mobile money to pay merchants Rewards or concessions should be given to merchants/agents to encourage them to promote and accept mobile money as an alternative to cash Encourage mobile money operators (MMOs) to develop pervasive and functional agent networks across Nigeria. MMOs need to create compelling product offerings that will generate sufficient customer transactions per month, thereby ensuring the commercial success of mobile money and the profitability of their agents Problems with network availability also have to be addressed Source: EFInA Mobile Money and E-Payment Channels Usage survey

16 Thank You 16