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ONE NETWORK Citizen and Financial Services. OPPORTUNTIES FOR MICRO FINANCE BANKS IN THE NEW CASHLESS ECONOMY. SITUATION OVERVIEW. Central Bank of Nigeria has issued licenses to 11 Mobile Money Operators (MMOs) and 12 others are pending.

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One network citizen and financial services

ONE NETWORK

Citizen and Financial Services


One network citizen and financial services

OPPORTUNTIES

FOR

MICRO FINANCE BANKS IN THE NEW

CASHLESS ECONOMY


One network citizen and financial services

SITUATION OVERVIEW

  • Central Bank of Nigeria has issued licenses to 11 Mobile Money Operators (MMOs) and 12 others are pending.

  • Commencement of the new National ID System with SIM registration, NUBAN, TIN, new Driver’s License etc.

  • This has created the need for a Nationwide network of community located network of agents to make these services available to all Nigerians.

  • It is estimated that agent network requirement is 1 per 3,000 citizens or 50,000 by December 2014.

    900 MFBs ( 2000 locations) as a group can play an important role as super agents in the creation of this network of agents for reaching the unbanked.


One network citizen and financial services

MFB CUSTOMERS AS AGENTS

Agents are pre-qualified based on easy accessibility and security of their business location. This cab be compared to trying locate an ATM machine. Each participating neighborhood agent is equipped with at one POS or service terminal that has been configured to access all services providersEach agent location is manned by a trained person with comparable competence to a teller in a MFB banking hall.Agents are like out side bank tellers to the MFB


One network citizen and financial services

MFBs AS THE SUPER AGENTS

Potential agents who are neighborhood businesses and typical MFB customers can be recruited and supervised by the MFBs who will act as their super agents

Super agent provides float management, accounts reconciliation and cash liquidity services to between 10 – 30 neighborhood agents around their location.

Each super agent location is managed by at least one certified bank teller services supervisor.


One network citizen and financial services

MFB AS SUPER AGENTS

Steps to participation

  • Setup and operate out of agreed locations

  • Directly own and operate 1 agent locations

  • Directly own or supervise 10 additional locations

  • Engage at least one certified agent supervisor

  • Sponsor 2 certified service support staff

  • Provide float support per registered agent .


One network citizen and financial services

SUPER AGENTS

Roles and Responsibilities

  • Qualifies and Documents neighborhood agent

  • Provides daily accounts reconciliation services

  • Ensures system cash liquidity and float adequacy

  • Maintaining service standards and procedures

  • Monitors fraudulent activities and ensure safety

    .


One network citizen and financial services

SUPER AGENT

PARTICIAPTION PROCEDURE



One network citizen and financial services

LOCATION OWNERS

Verifiable , Legally registered neighborhood based businesses or organizations.

  • Market shops , Shopping complex

  • Supermarkets ,Stores and provision shops

  • Restaurants, Salons ,Petrol Stations

  • Vendors ,kiosks,Cybercafes, Business centers,

  • Churches,Mosque , Town Hallss



One network citizen and financial services

LOCATION OWNERS

Location owners will be required to

  • Submit application through a super agent

  • Provide accessible & secure neighborhood location

  • Pass a security background check

  • Provide business documentation and KYC details

  • Sponsor 1 or more certified location agent

  • Own a service terminal with backup link and power

  • Agree to strictly adhere to CBN and other guidelines

  • Display branded materials and support numbers


One network citizen and financial services

LOCATION AGENT

PARTICIAPTION PROCEDURE



One network citizen and financial services

NEIGHBOURHOOD AGENTS

Legal residents of communities with basic education and certified financial service skills

  • Computer literate,Secondary School Leavers

  • Financial Institution Graduates

  • Trained and Certified Outside Bank Tellers

    Neighborhood or field agents are required to

  • Sponsored by a super agent or service provider

  • Bank Teller and Customer Service Certification test

  • Basic computer appreciation test

  • Pass an individual security background check


One network citizen and financial services

STEPS TO PARTICIPATION

Premises Owner Collects location approval form: Super Agent visits location and determines suitability based on CBN guidelines.

Approved Location deposits for Setup and Training: Professional training , staff verification and certification conducted for Location owner's sponsored agent.

Location equipment is provided: Installation and integration with network is effected. Procedural documents and branding materials are made available.

Listing of Location: Location address is submitted to One Network Service providers.

Business Commences at Agent Location.


Agent location income assumptions
AGENT LOCATION INCOME ASSUMPTIONS

OPERATES LIKE A FINCIAL AND CITIZEN SERVICE SUPERMARKET OR MINI BANK BRANCH FOR THEIR NEIGHBORHOOD OF 3,000 OR MORE.

Typical N40 per transaction

1 transaction per person monthly – N120,000

e.g NEPA BILLS, STARTIMES , MONEY TRANSFER

1 Terminal - 12 Transactions/ hour or 96/ 8 hour day N3,840/system daily. Value added – ??? daily

Overheads – Teller Salary – 30k, Network Support – 15k

6 – 12 month return on investment per location


One network citizen and financial services

SUPER AGENT INCOME POSSIBILITIES

Super Agent with 10 locations

  • Transaction fees - 24,000 Month/N10

    - 240k Monthly

    . Float Turnover and Management ? N500k/day , N12M/ Mnth.

  • Value Added or Premium Services?

  • Finance product extension and services



One network citizen and financial services

SITUATION OVERVIEW

17 Million Bank Account Holders

HAVE

3,000 BANK BRANCHES

6,000 ATM MACHINES

150 Million Citizens

NEED

2,000 MFB BRANCHES

50,000 HUMAN ATM LOCATIONS


One network citizen and financial services

OPPORTUNITIES FOR MFBs

Why should A Microfinance bank become a super agent:

The same reason banks invested in ATM's Machines.

- Manage the daily float deposits of their agents

- Use the MMOs and agent locations as channels to sell products and services to the public

- Share from the transaction fees of their agent locations such as mobile money services , bill payments , Tax, etc


One network citizen and financial services

OPPORTUNITIES FOR MFBs

  • As Super Managers, a Microfinance bank can:

  • Earn income from training and supporting their agents

  • Provide Financing products for agent location set up

  • Access financial inclusion and developmental funds


One network citizen and financial services

SUMMARY

COMMENTS

QUESTIONS

ADVICE

THANK YOU