Financial analysts have stressed the need for the Central Bank of Nigeria (CBN) to fast-track the commencement of agency banking in the country. According to them, this form of banking would help deepen
financial inclusion as well as drive penetration of banking services to the rural areas.
Speaking at the special induction for Associate of Chartered Institute of Bankers (ACIB) organised by the Chartered Institute of Bankers of Nigeria (CIBN), the immediate past president of the institute, Mr. Laoye Jaiyeola, said for a successful financial inclusion to be achieved, the apex bank should come out with appropriate modalities for the establishment of agency banking in the country.
In order to facilitate effective implementation of the agency banking in the country, he also urged the central bank to train personnel that would offer the service in the country.
According to him, the CBN had the responsibility to ensure that whoever was licensed to operate this form of banking was appropriately coordinated and registered.
He however suggested that like it was done in other countries commercial banks should also be allowed to enter into an agency relationship with competent institutions so as to sell banking services to local communities as well as rural areas.
Also, another former president of CIBN, Mr. Okechukwu Unegbu, said agency banking as a means to attain financial inclusion was a vital aspect that CBN must improve on.
He however maintained that the CBN needed to focus on micro finance banks to drive the product.
"The microfinance bank sector had problem not because they have not done well but due to the economic syndrome. Instead of closing them, they can support them by giving them more time to raise their capital or support them the same way they are dealing with capital market now.
This is the only area you can go into and financial inclusion will be a very big success otherwise there will be problem as they understand the local environment better," Unegbu insisted.
Also, the Chairman House of Representatives Committee on Banking and Currency, Mr. Jones Onyereri, who said agent banking was best for the economy, noted that to start its operation, stakeholders needed to look deep into areas that will pose obstruction of any form and deal with this issue first.
Speaking at the special induction for Associate of Chartered Institute of Bankers (ACIB) organised by the Chartered Institute of Bankers of Nigeria (CIBN), the immediate past president of the institute, Mr. Laoye Jaiyeola, said for a successful financial inclusion to be achieved, the apex bank should come out with appropriate modalities for the establishment of agency banking in the country.
In order to facilitate effective implementation of the agency banking in the country, he also urged the central bank to train personnel that would offer the service in the country.
According to him, the CBN had the responsibility to ensure that whoever was licensed to operate this form of banking was appropriately coordinated and registered.
He however suggested that like it was done in other countries commercial banks should also be allowed to enter into an agency relationship with competent institutions so as to sell banking services to local communities as well as rural areas.
Also, another former president of CIBN, Mr. Okechukwu Unegbu, said agency banking as a means to attain financial inclusion was a vital aspect that CBN must improve on.
He however maintained that the CBN needed to focus on micro finance banks to drive the product.
"The microfinance bank sector had problem not because they have not done well but due to the economic syndrome. Instead of closing them, they can support them by giving them more time to raise their capital or support them the same way they are dealing with capital market now.
This is the only area you can go into and financial inclusion will be a very big success otherwise there will be problem as they understand the local environment better," Unegbu insisted.
Also, the Chairman House of Representatives Committee on Banking and Currency, Mr. Jones Onyereri, who said agent banking was best for the economy, noted that to start its operation, stakeholders needed to look deep into areas that will pose obstruction of any form and deal with this issue first.
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