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FCMB gets EFInA’s $2m grant for agency banking

By Chijioke Nelson
18 July 2016   |   2:58 am
Enhancing Financial Innovation & Access (EFInA) gas given an Innovation Grant of $2 million to First City Monument Bank (FCMB) Limited as support for “Group Lending ...
Mr Ladi Balogun, CEO First City Monument Bank

Mr Ladi Balogun, CEO First City Monument Bank

Enhancing Financial Innovation & Access (EFInA) gas given an Innovation Grant of $2 million to First City Monument Bank (FCMB) Limited as support for “Group Lending and Agency Banking” project.

EFInA, a financial sector development organisation , said it supported the project, which provides financial services and access to credit facilities for the financially excluded population.

FCMB’s Group Lending project is a digitised credit and savings solution, which facilitates instant account opening with debit card issuance for online real time transactions, driven by Point of Sale (POS) and mobile devices.

The EFInA Innovation Grant will enable FCMB extend facilities to prospective customers in twelve states– Bauchi, Kaduna, Sokoto, Niger, Kwara, Lagos, Oyo, Ogun, Akwa Ibom, Rivers, Cross River and Abia.

The Chief Executive Officer of EFInA, Chidinma Lawanson, stated that its “Access to Financial Services in Nigeria 2014” survey, showed that 42.7% of the total female population is financially excluded, compared to 35.8% of the total male population.

She noted that FCMB’s project seeks to drive financial inclusion by targeting low-income women and micro business owners directly through digital financial services and agent banking.

“The project is estimated to impact over 200,000 customers, by providing them with a minimum loan of N30,000 per beneficiary, including a compulsory savings element of the loan, which will deepen the savings culture among the financially excluded population.

“In line with EFInA’s focus to increase access to financial products and services to the low income population, especially women, the project is also designed to empower women by recruiting female agents in the target communities,” she said.

The Group Managing Director/Chief Executive Officer of First City Monument Bank (FCMB), Ladi Balogun, said: “Through this project, the low income population will be provided with access to credit, savings and other value added services such as funds transfers and bill payments.

The Group lending project will drive financial inclusion by increasing access to financial products and bring financial services closer to the unbanked adult population: through the deployment of agents in communities without financial service providers.

“The project will be highly driven by technology to create a distinct offering from other existing micro lending businesses. The automation of loan processing, disbursement and repayment via POS/Mobile solutions will ensure an efficient and swift loan disbursement and collection process”.

Through this innovation grant, EFInA aims to promote financial inclusion through market development by enabling provision of appropriate financial products and services at an affordable price to micro business owners and those who are currently financially excluded.