In light of the 38 million Nigerian adults (36% of the population) who remain completely financially excluded, the Central Bank of Nigeria (CBN) set a target of achieving 95% financial inclusion by 2024.
To this end, Payment Service Banks (PSB) licenses have recently been awarded to Telecommunications companies – MTN (Momo PSB) and Airtel (SmartCash PSB) increasing the number of Telcos operating PSBs to 4, with Moneymaster PSB, a subsidiary of Globacom and 9PSB, a subsidiary of 9mobile, already in existence.
The implication of this new development for traditional banks and other financial institutions is increased competition to win the largest share of the 38 million financially excluded Nigerians. On the flip side, it reiterates the opportunity for banks and other financial institutions to drive growth through financial inclusion.
In this Whitepaper, we discuss key measures for banks to stay ahead despite the rise of Telco Payment Service banks.