Digital banking has recently recorded a massive increase in the number of banking Nigerians. The introduction of the digital banking system in Nigeria has led to a sudden rise in the number of populations engaging in the banking system.
For the sake of this article, we would focus on financial inclusion.
Financial inclusion is achieved when people have easy access to a broad range of formal financial services that meet their needs at affordable costs. The services include but are not limited to, payments, savings, credit, insurance, pension, and capital market products.
Although financial inclusion in Nigeria is gradually growing, it is observed recently that the number of Nigerians having access to savings, payments, credit, insurance, pension, and capital market products has suddenly increased due to the introduction of digital banking.
Before the Nigerian financial sector underwent a significant transformation, banks were seen as exclusive spaces for a set of renowned dignitaries, people of honors, class and personalities, places where high-earning individuals were the only ones entitled to world-class banking products and services. This misconception left a large part of the population unbanked and unable to benefit from essential financial services.
Digital banking driven by technologies has proven to be a highly effective tool in changing people’s views and mindset, bringing about changes in operating and business models, impacting every component of service delivery, especially in the banking industry. Digital banking enabled numerous banking platforms; a very good example is agent banking (a system established to enable people to make transactions easily, conveniently and comfortably). Through the agent banking system, people can make withdrawals, transfers, deposits and lots more with little and less stress!
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