an assessment of financial inclusion€¦ · objective: to enhance the adoption of digital...
TRANSCRIPT
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An Assessment of Financial Inclusion
Dr. Olayinka DAVID-WESTDepartment of Operations,
Marketing & Information Systems
Email: [email protected]
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Outline
• Background/Introduction
• Financial Inclusion
• The 3-Edged Sword
Demand
Supply & Distribution
Policy
• E-Banking Heads Call to Action
#sustainabledfs
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Background
#sustainabledfs
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Lagos Business School (LBS)
• Business School of the Pan-Atlantic University (PAU)Founded: 1991Mission: LBS is a community of people committed to creating and
transmitting management and business knowledge based on a Christian conception of the human person and of economic activity and relevant to Nigeria and Africa at large. We strive to be a world-class business school which will have a significant impact on the practice of management.
• Programmes: MBA (Full time, EMBA, MEMBA)Executive Programmes (CEP, AMP, SMP, OMP, MAP, AgMP)Seminars and Custom Programmes
• QualityInternational Accreditations: Association to Advance Collegiate Schools of
Business (AACSB) & Association of MBAs (AMBA), Financial Times ranking in open enrolment executive education and custom
programmes.
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The SIDFS Initiative
• Launched in 2015
• Bill & Melinda Gates Foundation (BMGF)
Objective: to enhance the adoption of digital financial services as a tool for financial inclusion and economic growth through research, advocacy and capacity building.
• MasterCard Centre for Inclusive Growth
Striver Insights & Learning Needs Assessment
• Multi-disciplinary team lead by Dr. Olayinka David-West
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SIDFS
• Scope of Work
Secondary data analysis (demand-side)
Supply-side studies
Providers – Assets, Resources & Capabilities
FMCG – Distribution/Route-to-market
• Outcomes
Industry Engagements
Expert Knowledge-sharing
Academic & Professional
Student Case Competition
2016 State of Market Report
Consumer + Supplier Insights
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FI in Nigeria: Chronology
#sustainabledfs
ACCESS to and USE of DIVERSE financial services at an AFFORDABLE cost
2 billion
1 billion
60+ million
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Consumer FS
INSURANCE
INVESTMENTS/LONG-TERM SAVINGS
pensions
LENDINGcredit/borrowing
PAYMENTS
salaries, remittances, benefits, P2P & bill payments
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Mobile Money Opportunity
#sustainabledfs
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Demand-Side: Consumers Insights
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DFS Inhibitors
11
Under-banked
MM
Account
Unbanked
MM Account
#sustainabledfs
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Consumer Profiles
#sustainabledfs
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Consumer Profiles
#sustainabledfs
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Is this Enough?
PSYCHOLOGICAL & BEHAVIOURALrisk, malleability, financial orientation, financial attitudes, resilience, relations, financial identity
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Supply-Side: Resources & Capabilities
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Resources & Capabilities
#sustainabledfs
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Competencies
#sustainabledfs
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Business Models
1
8#sustainabledfs
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Distribution
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FSPs
Source: Fspmaps.com
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Bank
4,989commercial Banks
869offsite ATMs
48 Bank Agents
Source: Fspmaps.com
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Agent
3,567 active
AGENTS
Source: Fspmaps.com
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Regulatory-Side
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Policy Evaluation
• Infrastructure
• Last mile distribution
• Know-Your-Customer (KYC)
• Interoperability
• Competition
• Collaboration
• Consumer protection
• Business environment
• Consumer education
Doctrinal Analysis of legal instruments: laws, regulations, policies and guidelines
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• Research Reports
LBS/SIDFS SoMR
MicroSave Agent Network Analysis
• Discussion Themes
Policy and Regulation
Last Mile Enablement of DFS
Responsible Finance
• Partners
IFC
MicroSave
BusinessDay
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CeBIH: Call to Action
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“We need banking, but we do not need banks anymore.”
Bill Gates, 2015
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The DFS Challenge
28
Extend FS to underserved/Financial Inclusion
Improve Security
Increase Efficiency
Employment Opportunities
Lower Transaction Costs
Eliminate barriers - distance, access
Enhance Commerce
Ease Remittance
Financial Empowerment
Support Microfinance
Affordable
The potential of DFS remains enormous if well exploited
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DFS Opportunities
• Productivity ⋯ 6.6%• Investments ⋯ 4.6%
• GDP ⋯ 12.4% ($88 billion)• 3 million jobs
#sustainabledfs
Person (P) Business (B) Government (G)
Person (P) USD 89 billion USD 56 billion USD 26 billion
inbound/outbound remittances
cash in/cash out
wages
dividend payments
wages
welfare
pensions
agriculture credits
Business (B) USD 95 billion USD 317 billion USD 36 billion
bills — electricity, cable TV
other — school, medical
airtime/top-up
savings/investments
supplier/distributor
paymentsinvestments
rebates
agriculture credits
Government (G) USD 4 billion USD 62 billion USD 6 billion
bills/tariffs
taxes
bills/tariffs
taxes
agriculture inputs
statutory payments
sub-national accounts