Diamond Bank Chief Executive Officer, Mr Uzoma Dozie has said that the impact of telecommunications on the banking sector is great.
He made this known recently on his social media platform; Linkedin.
According to him, opening an account no longer requires a branch, it only needs a phone signal, which covers 99 per cent of Nigeria.
“For example, in Diamond Bank’s partnership with MTN, over nine million customers have opened a bank account on their mobile phone simply by dialling a shortcode”.
He explained that by 2020 there will be 200 million smartphone connections in Africa. While in Nigeria, there are more mobile phone lines because16 smartphones are sold every minute and 24 per cent of people already have access to mobile broadband .
“Mobile technology, mobile payments, and therefore cardless payments are already becoming a way of life for millions of people. Digital banking technology is moving beyond payments, as it is now possible to open a bank account, create savings plans and conduct other transactions using a mobile device.The changing lifestyles, ubiquity of mobile phones, the number of people across Nigeria using mobile banking is rising exponentially. This is creating the opportunity to turn my vision of a cardless Nigeria into a reality”.
The CEO further said, Athe progression is that cash-using customers become cashless as they switch to using cards, and then become cardless as they switch to using their mobile for all financial transactions. However, technological developments – in particular the growing use of mobile – have presented Nigeria with a unique opportunity to leapfrog straight from cash to cardless.
“There are however great challenges to overcome. In Nigeria, 80 per cent of payments are still made in cash. Diamond Bank is at the forefront of modernising payments with 89 per cent of our transactions now cashless up from 67 per cent in July 2016. Steps are being taken in the right direction, and technological innovation can really propel this transformation forward.
“Going cardless is well suited to the realities of Nigeria’s economy and geography, with over 50 per cent of the population living in rural communities (World Bank) where infrastructure is often minimal. Customers are more likely to have access to a mobile phone than proximity to a physical branch, meaning electronic payments are better suited to the population”.
Dozie noted that using cardlesss technology to reach remote communities should be a key priority for Nigeria’s banks.
“Doing so is a win-win situation; not only does it ensure more people are banked, it ensures more people are part of the formal economy. This will create jobs and revenue – necessary for the development of healthcare, education and some other key national infrastructure.
“Going cardless will also give people access to financial products on-the-go. This improves the customer experience, as in a cardless economy people can make a range of payments anywhere and on a 24/7 basis, spending less time at ATMs and branches and more time generating commerce or with families”.
He maintained that Nigeria is becoming more mobile and digital. And it’s now up to the financial services sector to respond to this technological revolution and challenge the norms to make way for a truly cardless future.
“Banks, supported by the Fintech industry, have the capacity to drive this enormous change.I believe a cardless economy can transform Nigeria from the bottom up”.