EFInA @ Financial Services Workshop Decries MM Low Awareness

Enhancing Financial Innovation & Access (EFInA) hosted a workshop with the theme of ‘Maximising the uptake of digital financial services through understanding consumers’ needs,’ but not without a decry on low awareness on mobile money in Nigeria.
 
The workshop featured findings from two new studies conducted by EFInA and InterMedia about mobile money and other digital financial services. 
 
Both studies found that awareness and usage of mobile money remains low in Nigeria. 
 
According to the InterMedia Financial Inclusion Insights study, as of November 2013, only 12% of Nigerians aged 15 and older were aware of mobile money, and less than 1% of them used mobile money.
 
Mobile money awareness and usage was slightly higher in “Cash-less Phase II” states (Abia, Anambra, Kano, Ogun and Rivers states, and the FCT) where the Central Bank of Nigeria’s Cash-less Policy was introduced. 
 
EFInA research found that as at October 2013, only 4% of adults in the Cash-less Phase II states used mobile money. 
 
The EFInA study also revealed that in these states, cards (debit, credit cards and pre-paid cards) were the most widely known and used electronic payment instrument among respondents; and that men were more likely than women to use electronic payments.
 
Findings from EFInA and InterMedia research indicated that the barriers to the uptake of mobile money in Nigeria include low customer awareness, lack of trust in mobile money, and unreliable GSM networks. 
 
However, respondents in both studies also shared positive impressions of mobile money, saying that they perceived mobile money to be fast, convenient, and safer than carrying cash. 
 
Modupe Ladipo, chief executive officer of EFInA, said, “The financial services industry can drive uptake of mobile money by educating customers, providing reasonably priced products that meet customer needs, and creating the right incentives for both customers and mobile money agents.”
 
Peter Goldstein, vice president at InterMedia, said that Nigeria has a higher percentage of bank account holders, but a lower percentage of mobile money users compared with other countries studied, including Uganda and Kenya. 
 
Mr. Goldstein emphasised the need to educate potential customers about mobile money services, particularly regarding security measures that have been implemented to protect against theft and fraud. 
 
He also encouraged participants at the workshop to visit the interactive data centre at www.finclusion.org to access more data on digital financial services in Nigeria.
 
The workshop also featured a presentation by Salah Goss, programme officer at the Bill & Melinda Gates Foundation. 
 
Ms. Goss spoke about the Bill & Melinda Gates Foundation’s innovative approach to managing data on digital financial services, including the deployment of www.fspmaps.com, an interactive map that shows financial access points in Nigeria. 
 
Ms. Goss challenged financial services providers to fully realise the power of data, saying that, “Research is one of the tools most under-utilised by financial services providers.”
 
As Nigeria goes cash-less, the landscape for digital financial services, including mobile money, card payments, electronic funds transfers, is changing rapidly. 
 
EFInA hosted the workshop to help the financial services industry better understand consumers’ needs, in order to drive uptake and usage of digital financial services. 
 
The workshop was attended by a broad range of stakeholders, including mobile money operators, deposit money banks, microfinance banks, payment service providers, mobile network operators, insurance companies, and regulators.