The Lion King | 43
Feature
I
t is still a monumental task to get certain
categories of Africans to believe in the
banks in spite of the reforms and giant
strides the banking industry has made.
People have continually lived in a world
of scepticism and fear of losing their hard
earned money if they decide to put their
money in the bank.
My late Grandma was a member of this
school of doubt-filled people. In her closet
world, she would never take chances with
her currency; whether it was dollar or naira.
Apart from a large chunk of her life sav-
ings which was safely tucked away under
her mattress or some ragged strip of fabric
in one remote corner of her bedroom, the
rest would be at the fringes of her wrapper
as she hobbled around her little space.
There are still other people who are much
younger than her, and are expected to
know better, but store large amounts of
money in their homes with such unblinking
cynicism.
Indeed, it takes a lot to change percep-
tion. For the unbanked African, this would
call for more detailed levels of personal-
ized service if you ever get such an indi-
vidual to open an account.
The main allure of Africa’s banking mar-
ket is basically its potentially vast terrain.
However, a large number of Africans are
yet to engage the services of banks as the
age – old habit of stuffing money into pil-
lows and mattresses still, inhabit the African
consciousness.
Demand for basic retail banking services
has been on a steady rise and this has
been buoyed by a growing African middle
class. In spite of the drudgery and despair
occasioned by post – conflict circumstanc-
es, the continent has continued to show
resilience in remoulding itself and staying
afloat as an investment destination. In line
with this frenzy of reinvention, regional
banking groups are refocusing their ener-
gies towards meeting the demands of an
ever growing affluence.
For the prospective first time customer, his
bank’s interface should perhaps, have the
protean aptitude of a whiz kid and the
soothing empathy of a mother hen. With
that show of commitment, he is rest assured
that his money is safe.
A cursory look at Nigerian banking system
and statistics has shown that retail bank-
ing has a growth projection of more than
15% per annum. This annual growth rate
has meant an appreciable increase in the
number of deposit account holders. The
strides made in consumer banking largely
reflect the visible acceleration in economic
activities, but this has been hinged on pru-
dent management of economic policies
geared towards a thriving private sector.
Against the backdrop of recent banking
sector reforms, innovative banking service
has taken the driving seat with a studiously
built bottom-up strategy to sustain their
operations.
Ironically, some of the unbanked would
rather stick to co-operative societies and
such credit unions hoping that these
guarantee safety for their money. But the
credit unions in turn need the banks when
their operations expand and their horizons
broaden. If properly guided and tutored,
the unbanked are introduced to the reali-
ties and unending prospects of deploying
banking services at their convenience. In
United Bank for Africa, customers have a
wide array of products and services such
as debit and pre-paid cards (UBA Afric-
ard), savings accounts, U- Direct, U-mobile
services, etc, to make banking so easy and
accessible.
Currently, banks are throwing up new initia-
tives that would bring in more customers
into the sector with a sustained sense of
confidence and trust. Countries like Kenya
have deployed mobile banking technol-
ogy (mobile money) to attract the low
income earners and the unbanked. More
than 70 per cent of its citizens have keyed
into this mobile banking model.
The current economic trend reflects robust
economic growth that would in turn gener-
ate and widen opportunities for innova-
tive technology and enhanced financial
services. As Africa’s global bank, UBA has
pitched its tent in a continent that deliv-
ers on its potential and from all intents and
purpose this is the best place to be.
Wooing the unbanked
by Michael nwabuzor
