By Chinwendu Obienyi
9 Payment Service Bank (9PSB), Nigeria’s digital payment service bank focused on financial inclusion, has reiterated that financial inclusion is crucial for poverty reduction and economic prosperity in Africa. This was emphasized at the Regtech Africa Conference held recently in Lagos.
The event, themed “Harnessing Partnerships for Africa’s Prosperity – Bridging the Data Trust Gap,” brought together financial experts and thought leaders in the digital financial service industry across Africa to share knowledge and develop strategies to increase data trust in last-mile digital financial service delivery.
Delivering a keynote presentation, the Managing Director and Chief Executive Officer of 9 Payment Service Bank (9PSB), Branka Mracajac, stated that financial inclusion remains a key focus in Nigeria and Africa, playing a significant role in reducing poverty and fostering prosperity.
Mracajac noted that achieving the desired results requires a concerted effort by industry players to make financial products and services available, accessible, and affordable for all unbanked and underserved individuals and businesses, regardless of age, gender, geographical region, and socioeconomic status.
She explained, “It also aims at empowering people with knowledge through financial literacy programmes and providing them with tools such as savings accounts and other payment options to participate in formal financial systems. A survey conducted in Nigeria in 2008 by EFinA revealed that about 53 per cent of adults were excluded from financial services. Furthermore, financial inclusion as a vehicle for economic development has had notable positive impacts in Nigeria, decreasing the exclusion rate from the initial 53 per cent of about 40 million adults to 36 per cent, which today means about 29 million adult Nigerians.
“59 per cent of households in Nigeria are income providers, and while most of the income providers are women, they are unfortunately the ones mostly excluded from formal financial services. Since Nigeria has about 26 per cent of adults financially excluded, the target for this year, as mandated by the Central Bank of Nigeria, is to attain a 25 per cent inclusion figure.”
She added, “As we strive to grow financial inclusion, lack of access to financial services, low financial literacy among the populace, the prohibitive cost of financial services, and lack of trust in financial institutions remain roadblocks. Therefore, stakeholders and various industry players should adopt localization of financial literacy and education, reduce the minimal cost of accessibility for the people, and simplify products and processes.”
