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.
Citizen and Financial Services
MICRO FINANCE BANKS IN THE NEW
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.
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
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.
Steps to participation
Roles and Responsibilities
Verifiable , Legally registered neighborhood based businesses or organizations.
Location owners will be required to
Legal residents of communities with basic education and certified financial service skills
Neighborhood or field agents are required to
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.
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
Super Agent with 10 locations
- 240k Monthly
. Float Turnover and Management ? N500k/day , N12M/ Mnth.
17 Million Bank Account Holders
3,000 BANK BRANCHES
6,000 ATM MACHINES
150 Million Citizens
2,000 MFB BRANCHES
50,000 HUMAN ATM LOCATIONS
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