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Rethinking Agency Banking with New Innovations in Nigeria

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Emmanuel   Okoegwale

Few weeks ago, I attended a national financial services agency forum, organized by one of the leading industry players in Nigeria with very impressive attendance from agents, nationwide.

The venue was filled up with enthusiastic agents but with significantly eroded transactional abilities, due to operational challenges that is affecting their service delivery at the last mile and causing significant friction, with customers.

It was a complains galore for the agents as they churn out different negative experiences, disappointments linked to poor support arising from failed transactions, delayed and inadequate reconciliation processes, poor support from providers etc.

Agency banking is provisioning of basic financial services such as cash deposit, cash withdrawal, fund transfer, bills payment etc through third party agents within communities. They deploy their own resources like cash, outlets etc while the service provider, will provide items such as branding materials etc. Point of sale devices are provided by service providers and in some instances, paid for by the agents but recently, some providers are issuing them at no cost.

The agency network is the distribution network, front-end and customer facing entities which require significant resources to build, manage and cultivate.

Cost of building these networks can be significant for many operators if the overall strategy of the provider, is not well defined and it becomes more complex as they reach new geographies, requiring diverse implementation plans.

While the ultimate for service providers, is to unlock the customer value, by  enabling them convert cash to electronic value and use the services themselves but the agent as the middle-Man, wants to keep the customers locked into over-the-counter transactions so that, they can continuously, earn fees.

The agent has no compelling reason to educate the customer to acquire and learn how to use the wallet. It’s a loss for the agent whereas the Banks are banking on this front-end partner to provide that education and conversion. There might be value for the agents if the providers can rethink their commissioning strategy that gives the agent some long-term value for converting customers to wallet users with consideration for residual commissions strategies etc.

Shared Agency

Shared agency is visible at the front-end but disaggregated at the back-end with locked-in, float accounts. At the front end, the POS will accept any Bank card issued in Nigeria seamlessly but at the back end, the agent may have multiple agency agreements, so the agent keeps multiple float accounts with multiple providers which fragments His total e-float inventory and its, inefficient. The agent may need to keep switching transaction devices, re-balancing different float accounts, frequently.

Agents are Working, Blindly

From the various complaints of the agents at the event, it was evident that the agents had not been well equipped aside the almighty Point of sale device which most providers think as the ultimate, in setting up, equipping and activating agents.

Operational issues had to be reported through telephone or email to back-office, transaction reconciliation issues must back with POS prints-out which might have faded, missing etc.

Delayed resolution period to resolve agent transaction issues, leading to customer dissatisfaction and sometimes intervention by security personnel and sometimes, loss of agent funds.

A well-equipped agent will save the provider significant time and resources by using digital and innovative tools provided by the provider to manage day -to-day operations in an innovative manner, that adds value to the entire value chain.

The Agent Dashboard

Agency dashboard provides actionable transaction data, which is used to manage customer transaction outcomes, identify and isolate issues which will then increase efficiency and performance of the agents.

The dashboard will enable agents to have simple, intuitive and secure interaction with all their transactions channels like POS, Mobile money transaction data etc via a single interface. It provides critical operational functional that will enable the agent to transact effectively and securely which will then improve the customer trust and overall experience.

Some customers will never sign up for wallets services because of trust issues, they need someone they can hold accountable when things do not work and that is the agent, who should be well equipped to address operational challenges, adequately.

Benefits

The dashboard reduces the agent’s support cost with agents having visibilities on some transaction data via their dashboard and increase uptime and performance.

Agents will be able to report suspicious transaction timely for flagging by the service providers thereby reducing losses, arising from fraud etc.

It will help the providers to reach agents in a timely and efficient manner if there is a ‘run’ on the system.

Agents can deliver improved services which reduces agent and customer friction and improves the customer experiences.

It’s a major win for agents to be able to work more effectively and efficiently in stressful, street-level “Ojuelegba” environments.

Conclusion

For agent banking to prosper in Nigeria, forward thinking and innovative providers, can deliver innovative directions that can empower the agent network with effective tools (front and bank-end) that can drive Nigeria’s match into the digital financial services era.


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E-Financial

Access Bank Unveils DiamondXtra Season 16, Dangles N200m, 3 SUVs

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The sixteenth season of DiamondXtra, a savings and reward account where customers of Access Bank are rewarded with several prizes, have been unveiled in Lagos.

Access Bank Unveils DiamondXtra Season 16, Dangles N200m, 3 SUVs

 L – R : Doris Okpara, Product Manager, DiamondXtra; Ngozi Igboanugo, Regional sales Manager Festac 1&2 & mainland Access Bank; Bolarinwa Animashaun, Regional Sales Director Lagos 2 Access Bank ; Emeka Ezikeugo, Diamondxtra N200,000 Onsite winner; and Adaeze Ume, Head Consumer liabilities, Access Bank during the launch of Diamondxtra Season 16 held at Alaba International Market Lagos yesterday.

The Season 16th of the special interest yielding hybrid account which allows deposit of both cash and third-party cheques has been upgraded as customers will win prizes to the value of N200 million and three SUVs, amongs other mouthwatering prizes.

Speaking at the unveiling in Alaba International Market, Lagos, Mr Bolarinwa Animashaun, regional sales director, Lagos, said the new season will bring more goodies to the customers as the bank has taken their interest at heart.

“In the last fifteen years, we have been able to ensure customer loyalty, reward committed customers over time and show that we are a bank that is ready to empower people and partner with people.

“If I take it into specific figures, we have rewarded 26,696 customers and we’ve given a total sum of N6.5 billion over the period.

This Season16is interesting, because, we have seen a lot of opportunities to expand into digital opportunities and this time around, we will be rewarding 15,786 customers, and 10,000 of them will be digitally rewarded.

“This is almost half of what we have done over the last 15 years. So that is what is making it special. We have takenit into the possibilities of how technology can expand our business and reward customers”.

The draws for the new season are going to be the same like the previous ones as it will be held in different regions.

“So, we start from the monthly draws, quarterly draws and the annual draws. What makes it extremely interesting this year is that we will be rewarding with up to N200 million in prizes and we have added some very interesting gifts. We will be given out three SUVs as part of the N200 million price for this year”, Animashaun added.

At the unveiling, Access Bank conducted onsite draws where 48 customers who have DiamondXtra accounts and were present at the unveiling won cash prizes ranging from N20,000 to N200,000.

Breakdown shows 40 customers won N20,000 each, five customers won N50,000, two customers won N100,000, while one customer went home with N200,000.

Among winners of the N20,000 prize was Mr Victor Edobor, who said he opened the DiamondXtra accounts 24-hours before the draws.

One of the two winners of the N100,000 prize, Mrs. Maureen Nneka Oforka, said she was surprised to have won at the well-attended event as that was her first time winning any prize.

She said, “I have never won any prize in my life. This is my first. I came here reluctantly and thank God, I am here and I am a winner of N100,000 which has already been paid into my account.

The grand prize winner of N200,000, Mr. Emeka Ezikeugo, a trader in Alaba, said. “I will forever be grateful to Access Bank for the prize as I was not expecting it. I thank the bank for showing leadership among its peers”.

To be part of the winning train and qualify for the DiamondXtra season 16 which is open to both new and existing customers, new customers are required to open a DiamondXtra savings account with just N5,000 by dialling *901*5# or walking into one of our branches to open the account.

However, the more multiples of N5,000 both new and old customers save, the higher their chances of winning at the monthly, quarterly and annual draws.

DiamondXtra is an interest yielding hybrid account which allows deposit of both cash and third party cheques. Hybrid means a combination of both savings and current account features. The DiamondXtra reward scheme has given away over N6.5 billion in cash and household items to over 15,000 loyal customers over the last 15years.  Please click HERE to learn more.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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Lafarge Africa Launches Girls-in-Tech Programme to Empower Women Innovators

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Recognising the underrepresentation of women in the technology sector, Lafarge Africa Plc, has launched the Girls in Tech Program, a pioneering initiative aimed at empowering young women in technology.

Meticulously crafted to bridge the gender gap in tech and empower 10 young females between the ages of 18-25 years from Lafarge Africa Host communities in Cross River State, the program is poised to make a significant impact in the region.

The Girls in Tech Program seeks to harness the unique talents of these young women and introduce them to the dynamic world of technology. By providing them with essential skills and opportunities, the initiative aspires to equip them to become self-reliant as well as problem solvers in society.

In collaboration with Aptech and Arena Multimedia,globally recognized leaders in technology incubation and opportunity, as well as The Bridge Leadership Foundation, the boot camp promises to be a transformative experience for the participating girls, who are eager to make their mark in the tech industry.

Speaking during the onboarding to flag-off in Calabar recently, the Plant Manager, Lafarge Africa Plc, Sotirios Valsamakis, who was represented by the Human Resources Business Partner, Lafarge Africa Plc; Barong Ita, revealed that the program was in line with the company’s commitment to diversity and inclusion.

She also added that the initiative is designed to ignite a spark of inspiration, hope, and possibilities in the heart of the selected girls across the host communities.

“As an organization, people are an integral part of our sustainability drive, and we are invested in building lasting progress by empowering members of our host communities. We also recognize the need for greater and greener diversity and inclusivity within the tech sector.”

Today’s event is not just about launching a program. It is about igniting a spark of inspiration, hope, and possibilities in the hearts of these young women. It is about challenging stereotypes.”

Also speaking at the event, the Cross Rivers State Commissioner for Science, Innovation & Technology, Justin Beshel represented by Edwin Adie, Technical Senior Advisor, Cross Rivers State Ministry of Science & Technology commended Lafarge Africa for the initiative adding that it is in line with the State government’s plan towards science, technology and innovation development.


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Hydrogen, CCHub Partner to Encourage Fintech Startup Success

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As the country faces economic challenges, the need for adaptive strategies in the fintech industry becomes paramount. In line with this, leading Fintech startup, Hydrogen Payment Services Limited (‘Hydrogen’), has teamed up with Co-creation Hub (‘CcHub’) to host an insightful event themed, ‘Adapting Fintech Business Models to Economic Climes’.

The event, set to take place on Thursday, April 18, 2024, from 12:00 WAT at the CcHub office in Sabo, Lagos, will delve deep into the intricacies of Nigeria’s economic challenges and how these influence the fintech ecosystem.

Participants will gain actionable insights on how to adapt fintech business models to volatile economic conditions by prioritising flexibility, agility, and customer-centricity.

This collaboration underscores the shared commitment of both entities to empower aspiring founders venturing into the Fintech space amidst economic uncertainties.

By leveraging their respective expertise and resources, Hydrogen and CcHub aim to equip emerging entrepreneurs with the knowledge, tools, and support needed to thrive in today’s dynamic economic conditions.

Emeka Awagu, Chief Technology Officer at Hydrogen, commented on the strategic partnership with CcHUB: “Our alliance with CcHUB amplifies our shared commitment to pioneering transformative solutions in Nigeria’s fintech sector.

“By leveraging Hydrogen’s technological expertise alongside CcHUB’s innovative approach, we are primed to set a new standard for fintech excellence and drive impactful change across the industry.”

The event will feature a distinguished panel of industry experts and thought leaders, including, Ina Alogwu, Group Director, Digital Transformation, ARM HoldCo; Emeka Awagu, Chief Technology Officer, Hydrogen, and Miracle Ezechi, Digital Marketing Manager, Hydrogen.

The panel discussion will be moderated to encourage an engaging and insightful conversation on the strategies and innovations required to thrive in Nigeria’s Fintech landscape amidst economic challenges.


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