DESPITE sustained campaigns by fiscal and monetary authorities towards a cashless economy and the increase of partnership between mobile network operators and the banks, latest report from Ericsson indicated that of the 180 million Nigerians, only 3.6 million use mobile money services.
According to the Ericsson Consumer Insight Report for 2016, which was presented in a video conference from South Africa to the media in Lagos on March 3, most of the financial activities in Nigeria are still cash-based.
The report showed that many barriers still existed to the adoption of mobile money services for personal use on mobile phones. Senior Advisor,ConsumerLab and Mobile Financial Services,Patrik Hedlund, reported that most respond said that they have not heard about the possibility to use mobile money on their own phones.
He noted that out of the four of the people in the lower socioeconomic groups lack the basic prerequisites such as an ID card and access to a mobile saying that many are not using the service because it is perceived it unnecessary or too complicated.
Speaking further, he said that banks are preferred as mobile money services providers noting that mobile operators are the runner up with higher preference than money remittance agencies, microfinance institutions. Hedlund said that mobile operators were also preferred by lower socioeconomic classes compared to other socioeconomic classes.
The report, which compared Nigeria with Ghana, Angola,Uganda and DRC showed that the percentage for mobile money is 30 per cent, 9 per cent, 38 percent, 23 per cent for Ghana, Uganda, and DRC respectively.
Hedlund further said that consumers had to make long journeys to reach the location where they can pay their bills saving that “money and taking loans also becomes problematic in unbanked Africa, with many hiding cash in their homes and relying on informal lenders who charge high interest rates. So, mobile money is really beneficial to them – if they can use it.” “Lower income people and the unbanked are the ones who are least involved in the formal financial system, due to factors such as distance to banks, education, and the inability to authenticate their identity,” Hedlund said.
The survey data was collected in July and October 2015 and compiled during face-to-face interviews, each lasting 40 minutes. Interviews were also conducted with experts from the World Bank’s Consultative Group to Assist the Poor (CGAP) and the Bill & Melinda Gates Foundation.
DESPITE sustained campaigns by fiscal and monetary authorities towards a cashless economy and the increase of partnership between mobile network operators and the banks, latest report from Ericsson indicated that of the 180 million Nigerians, only 3.6 million use mobile money services.
According to the Ericsson Consumer Insight Report for 2016, which was presented in a video conference from South Africa to the media in Lagos on March 3, most of the financial activities in Nigeria are still cash-based.
The report showed that many barriers still existed to the adoption of mobile money services for personal use on mobile phones. Senior Advisor,ConsumerLab and Mobile Financial Services,Patrik Hedlund, reported that most respond said that they have not heard about the possibility to use mobile money on their own phones.
He noted that out of the four of the people in the lower socioeconomic groups lack the basic prerequisites such as an ID card and access to a mobile saying that many are not using the service because it is perceived it unnecessary or too complicated.
Speaking further, he said that banks are preferred as mobile money services providers noting that mobile operators are the runner up with higher preference than money remittance agencies, microfinance institutions. Hedlund said that mobile operators were also preferred by lower socioeconomic classes compared to other socioeconomic classes.
The report, which compared Nigeria with Ghana, Angola,Uganda and DRC showed that the percentage for mobile money is 30 per cent, 9 per cent, 38 percent, 23 per cent for Ghana, Uganda, and DRC respectively.
Hedlund further said that consumers had to make long journeys to reach the location where they can pay their bills saving that “money and taking loans also becomes problematic in unbanked Africa, with many hiding cash in their homes and relying on informal lenders who charge high interest rates. So, mobile money is really beneficial to them – if they can use it.” “Lower income people and the unbanked are the ones who are least involved in the formal financial system, due to factors such as distance to banks, education, and the inability to authenticate their identity,” Hedlund said.
The survey data was collected in July and October 2015 and compiled during face-to-face interviews, each lasting 40 minutes. Interviews were also conducted with experts from the World Bank’s Consultative Group to Assist the Poor (CGAP) and the Bill & Melinda Gates Foundation.
No comments:
Post a Comment