Providing financial products and services to the low-income population represents a large business opportunity for the private sector.
Stakeholders in Nigeria’s financial system reached this conclusion at the financial inclusion seminar marking the 10th year anniversary of Accion Microfinance Bank on Saturday.
This is even as microfinance banks in Nigeria have recorded a total of 13 million customers according to Rogers Nwoke, President, National Association of Microfinance Banks.
A 2016 survey of the Enhancing Financial Inclusion and Access (EFinA) findings revealed that 40.1 million Nigerian adults, representing 41.6 percent of the adult population, are financially excluded.
Speaking at the seminar, Chairman of the Board of Directors, Accion Microfinance Bank, Patrick Akinuntan said financial inclusion had many benefits which include helping people to start and grow businesses.
It is in view of this, he added, that Accion Microfinance Bank believes in initiatives that offer undeniable benefits to its employees and the communities where its facilities are located. The theme of the conference was: “Making Financial Inclusion A Certainty In Nigeria by 2020.”
Akinuntan described financial inclusion as the provision of a broad range of high-quality financial products, such as savings, credit, insurance, payments and pensions, “which are relevant, appropriate and affordable, for the entire adult population and especially the low-income segment.”
Many Nigerians, for numerous reasons, are unbanked and lack access to formal financial services.
According to the EfinA report, 36.9million (38.3% of the adult population) have access to a bank account. This represents an increase of 3.0million adults, from 33.9 million in 2014. In 2016, the formally included segment increased from 45.4 million adults in 2014 to 46.9million adults in 2016. This represents an increase of 1.5million adults who have access to Deposit Money Banks, Microfinance Banks, Mobile Money, Insurance and Pensions.