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Banks Must Work with Telcos & Fintech to Grow Agency Banking – Report

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The Nigerian money deposit banks must establish synergies with the Fintech companies and telcos to leverage transactional and alternative data for the development of products and services for the targeted low income segments.

Besides, they must adopt a model that allows partners to focus on their core strengths, and banks to have account holders who do not actually have relationships with them.

All these are contained in a new report tagged Agent Network Accelerator Research, Nigeria Country Report 2017.

The report noted that limited understanding of the expected role of telcos by the banks is one of the banes of the growth of agency banking in the country.

Telcos should not be seeing as issuance of electronic value, but rather facilitating distribution of products to enable penetration of banking services in the market.

Besides, there is a bias towards traditional corporate banking strategies, since banks have not historically optimally offered products and services to mass market customer segments.

According to the for the banks to optimize the gains of agency banking, the banks must penetrate new customer segments by extending their banking offerings to rural areas and reorient their organisational structures, product development, channel demographics and customer development strategies.