FinTech

Ecobank’s Rapid Transfer will Drive Mobile Money, Economic Growth 

Mobile Money

ADEWUMI OJO

Sending money across Africa has become a burden to individuals because of high cost of transferring and receiving funds in the region. This is an impediment to mobile money.

Though mobile money has revolutionized the way financial services are provided across the globe but high rate of the service has rendered its less effective among the people.

Statistics released by the World Bank shows that the average cost of sending $200 is 9.4 per cent for sub-Sahara Africa which according to the bank is higher than any other part of the world leading

World Bank records show that mobile money transaction among Nigerians in diaspora amounted to $22 billion home in 2017, which is the highest in the Sub-Sahara region and the fifth in the world.

The Central Bank of Nigeria [CBN] in 2012, set financial inclusion targets for the year 2020, which is to achieve holistic mobile money transaction at the rate of 80 per cent of the adult population.

However, as of 2016, just 58.4 per cent of Nigeria 96.4 million adults were financially served and only 48.6 per cent of all adults used formal financial services.

In what could be described as a strategic step to promote mobile banking, EcoBank introduced a zero fees for all transfers done into Nigeria on its newly launched Rapidtransfer app.

Rapidtransfer is designed for both Ecobank customers and non-customers to  enable individuals send money and make payments in a fast, safe and reliable way.

Mobile Money

The bank said the initiative is to promote an efficient mobile money transfer in Nigeria with zero fees in a fast and convenient way and also boost financial inclusion in the country.

The Managing Director of the bank, Patrick Akinwutan, said the central ideal is to ensure Nigerians in the diaspora enjoy the best services through mobile money transfer.

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“We want to make it easy for Nigerians living abroad to send money to their loved ones at home instantly transfers on the Rapid transfer app are zero fees.

In addition, the Group Chief Executive of the Bank, Ade Adeyemi stated that the target of the bank is to enhance financial integration and economic growth of the continent.

“Historically the cost of sending across-border remittances in Africa has been far too high. Similarly, the process to send funds has long been inefficient and burdensome”.

The Rapidtransfer app remittance solution is a quick, easy and reliable digital solution that removes all of these issues.

Rapidtransfer ultimately enables the beneficiary to receive more of the funds originally sent to them, which in turn will have a multiplier effect on national economics by boosting mobile money and driving business growth.’’

However, much still need to be done to fast track Sub-Sahara financial ecosystem through remittances to boost the region economic growth.