Bickersteth, One Network Boss Says Broadband Is Critical in Agent Banking

Sola Bickersteth, chief executive officer, One Network, has described broadband as critical infrastructure in achieving the proposed agent banking of the Central Bank of Nigeria (CBN).

Bickersteth, whose company has been active in the agent banking drives, told Nigeria CommunicationsWeek  that the new policy has the potential to capture a large segment of the hitherto unbanked people depends, primarily, on broadband access and affordability.

The CBN in exercise of the powers conferred on it by Section 2 (d) of the Central Bank of Nigeria Act, 2007 and Section 57 (2) of the Banks and Other Financial Institutions Act (BOFIA), Laws of the Federation of Nigeria, 2004 issued guidelines for the maintenance of adequate and reasonable financial services to the public, the Central Bank of Nigeria (CBN).

The objectives of the guidelines are to provide minimum standards and requirements for agent banking operations; enhance financial inclusion; and provide for agent banking as a delivery channel for offering banking services in a cost effective manner.

However, the One Network Boss, said that there is a very direct link between broadband availability and the Agent Banking provisioning.

“Agent banking requires real time transactions; irrespective of the location. That is one of the biggest challenges. It is a very crucial requirement in driving financial inclusion. If broadband do not get to where the Agent is positioned he really can’t provide the service to the customers.

Speaking further on the processes to full Agent Banking launch, he said that critical stakeholders are working round the clock to ensure all Ts and I’s are crossed and doted, respectively.

“We are at a critical stage of the Agent Banking rollout. We are at the Supervisor stage. What I mean by that is; Central Bank’s target by 2020 is to reach 170,000 locations. However, most of the locations will need a supervisor; somebody who has minimum of average experience in banking to support them. Agent Banking is not like a recharge card business.

“Currently, we are concentrating on the Supervising Networks. That is why we started with the Nigeria Postal Service (NIPOST), because it is naturally a supervising organization. Thus, every post office will create 40 new locations around them.

“We are also looking at banks; people do not look at banks as supervisors, but they are the most experienced. For the banks, it is like deploying human Automated Teller Machines (ATMs). We are looking forward to banks starts deploying their agents to drive the moves. Then, we are talking to the microfinance banks. And other critical stakeholders involved in the process.

“We are on the process of nationwide workshop for members of National Association of Microfinance Banks, members of CIBM; we have already signed agreement with NIPOST. Once they are on board they will push the plan further to achieving the 170,000 locations,” he said.

Bickersteth, said he believes that the current moves by the telecom industry led by Mrs. Omobola Johnson, minister of Communication Technology, are on the right path to ensure broadband, as a critical national development infrastructure, is achieved.

“That is why we are very interested in the moves to ensure broadband is unleashed in the country, because it is like the backbone of the entire service,” he said.