The Central Bank of
Nigeria (CBN) Governor, Mr. Godwin Emefiele has said that increased adoption of
Digital Financial Services (DFS) in Nigeria has the potential to create three
million new jobs in Nigeria by 2025.
Also, for financial
services providers, Emefiele said DFS has been estimated to reduce the cost of
providing financial services by 80 to 90 per cent compared to the cost of a
traditional bank branch.
Emefiele gave the
advice in a keynote address he delivered at the 2016 BusinessDay Financial Inclusion
Summit in Lagos yesterday. He also advised ministries, departments and agencies
of governments as well as firms in the country to further digitise current cash
payments.
He noted that the
economy is presently going through a time of economic challenges, saying that
Digital Financial Services have substantial potential to promote financial
inclusion, increase productivity and support economic growth in our country.
Therefore, he urged all
stakeholders to step up initiatives to successfully advance the movement in
order to achieve the financial inclusion target by 2020 and boost economic
growth in Nigeria.
“Digital financial
services refer to financial services, such as payments, savings, loan or
insurance products, which are provided through electronic platforms, such as
mobile phones, the Internet, or electronic cards. Digital financial services
can promote financial inclusion, because they are capable of dismantling the
existing barriers to financial inclusion.
“One key barrier to
financial inclusion, as defined in Nigeria’s National Financial Inclusion
Strategy, is the remoteness of access to financial services. Several people do
not use financial products because they live too far away from a physical
financial access point such as bank branch, an insurance agent or ATM.
“Digital financial
services transcend such physical barriers as they can be availed through
virtual channels such as mobile phones, which today are ubiquitous. We have
noted commendable innovations in the industry today, thereby financial
institutions have begun to leverage the mobile platform to open accounts and
conduct transactions, enabling existing clients and previously excluded
population to access financial services in a more convenient manner.
“Digital financial
services can also reduce other barriers to financial inclusion, such as high
cost of transaction or transportation costs while also saving valuable travel
time,” the CBN governor said.
Furthermore, Emefiele
said DFS can also bring about substantial benefits for financial services
providers, and can boost the country’s GDP significantly and more sustainably.
For instance, a
McKinsey study postulated that digital financial services can increase
Nigeria’s GDP by 12 percent or US$88 billion by the year 2025. - The Guardian
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