Mobile phones trusted more than banks

Description:

As mobile technology continues to bridge the digital divide in developing economies of the world, preliminary finding from a mobile perception survey have shown that Nigerians trust mobile phones more than banking institutions and further suggests that mass banking through the mobile channel is imminent in the country.

According to the survey conducted by MobileMoneyAfrica, Africa's leading resource for mobile financial inclusion and shared with Guide2Nigeria, more than 65 percent of the semi urban and rural population that were interviewed completely prefer to have mobile phones as the principal channel for financial services rather than visit a bank.

Furthermore, another 95 percent chose not to go back home to pick their cheque book/savings book but would go back to pick their phones if left at home.

Emmanuel Okogwale, lead researcher said the study was a direct attestation of the growing influence of mobile money. With over 70 million mobile subscribers in Nigeria currently, Okogwale explained that the huge subscriber base is a significant and potential customer base that can be engaged by financial institutions using the mobile channel.

The mobile perception survey, a five month study, due for final release by end of March drew from interviews and questionnaires conducted in the six states across the geopolitical zones of Nigeria.

Available statistics from the Consultative Group to Assist the Poor (CGAP) reveal that an estimated 80 percent of those living in the United Nations - designated Least Developed Countries (LDCs) are unbanked.

Industry experts say that technologies like mobile phones are contributing significantly to overcoming these constraints. They further expound that mobile banking and mobile money remains the easiest route to adopt for any growth oriented financial institution in Nigeria given the wide disparate demographics and prohibitive cost of brick and mortar branch roll outs.

On the other hand, the mobile perception survey found that 45 per cent of the study group is comfortable going to the bank branches to receive international remittances. Also, 25 percent said that they can explore options likes ATM while 30 per cent said that they would access remittances from post offices and approved agents if possible in their own domains.

The study also found that 72 percent of the people receiving remittances do not have an account and when asked why, they claimed that the amount usually received is for pressing needs which had to be disbursed as soon as possible.

The much anticipated report would serve as an industry guide as financial institutions and mobile operators get ready to roll out mobile money services in coming months.