Agent Banking and Financial Inclusion in Nigeria: Challenges and Prospects
Abstract
The paper examines challenges and prospects of agency banking and financial inclusion in Nigeria. The study objective show that making financial services relevant to the unbanked on a daily basis requires agency banking that would allow Nigerians to easily convert cash into electronic value (e-value). Although gradual progress is being made to improve on financial inclusion through agency banking, critical challenges of low financial literacy, inadequate infrastructural facilities as well as inadequate and inefficient technology-based facilities by financial institutions, have limited the achievement of significant expansion in financial inclusion level in Nigeria. The study recommends that banks should register more agents as well as adopt new products by leveraging on available technology, that is all mobile and digital channels that facilitate the provision of financial services; while government should create incentives for telecommunication companies to enable them deploy quality data services in the rural areas in order to deepen financial inclusion
Keywords
Agency Banking
Financial Inclusion
Financial Services
Mobile Banking
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