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The Path to Inclusion is Mobile: An Interview with Ibukun Awosika

It may be a slow process, but financial inclusion in Africa is improving. Given the barriers formal banking faces on the Continent, including practical issues such as dispersed populations, and regional variations in infrastructure, it is unsurprising that this is not an issue which will be resolved overnight. We spoke to Ibukun Awosika to find out more on First Bank Nigeria's actions on financial inclusion, her thoughts on improving access to banking services – plus the impact of mobile in Africa.  

It may be a slow process, but financial inclusion in Africa is improving. Given the barriers formal banking faces on the Continent, including practical issues such as dispersed populations, and regional variations in infrastructure, it is unsurprising that this is not an issue which will be resolved overnight. As of 2014, 34% of those in Sub-Saharan Africa had a bank account – leaving approximately half a billion people in Africa unbanked.  

The popularity and accessibility of the mobile money account – almost six times more utilized in Sub-Saharan Africa than anywhere else in the world – is a good sign for financial inclusion, putting many on the path toward accessing formal financial institutions. In Nigeria (in 2015), one of the biggest economies on the Continent, approximately 45% of the population did not have a debit card or access to a financial institution account. 

This is figure is on the wane however, perhaps partly as a result of the efforts of one bank putting financial inclusion are the forefront of their strategy – First Bank of Nigeria. With campaigns designed to provide financial literacy early-on, as well as reaching underserved markets including young people and students, FirstBank has been committed to leveraging mobile technology in order to improve financial inclusion in Nigeria. Hoping to grow their customer base from 14.5 million accounts in 2017 to 30 million by 2021, they've also bolstered their mobile money services through their brand Firstmonie. Firstmonie agents are positioned in communities with low rates of banking penetration, allowing customers in rural locations to open accounts and access FirstBank services – with the hope that convenience and locality will fuel financial inclusion.  

Individuals and businesses are increasingly adopting digital payments and financial accounts ... unleashing large gains in productivity and investment, and prompting greater financial inclusion
— Ibukun Awosika

The face of these efforts is, to a great extent, FirstBank of Nigeria's Chairwoman, Ibukun Awosika. The first female chair of the bank, Ibukun Awosika has overseen the implementation of their FirstGem account, specifically designed for women and female entrepreneurs. At FirstGem's first anniversary at the end of last year, she announced “we will not stop until every Nigerian girl-child has found their voice and found their pocket.” Embracing the new possibilities of mobile tech, FirstGem not only supports women entrepreneurs through training and research, but fosters relationships through its provision of a virtual community for its users. 

Ibukun Awosika, Chairman, Board of Directors, First Bank of Nigeria Limited

Ibukun Awosika, Chairman, Board of Directors, First Bank of Nigeria Limited

We spoke to Ibukun Awosika to find out more on First Bank Nigeria's actions on financial inclusion, her thoughts on improving access to banking services – plus the impact of mobile in Africa.  

In your opinion, what is the most significant issue hindering inclusive financing in Africa?   

Financial services are the lifeblood of an economy, enabling households and businesses alike to save, invest, and protect themselves against risk. However, in emerging economies today, the majority of individuals and small businesses lack access to even basic savings and credit products, hindering economic growth. An estimated half a billion individuals in Africa today are financially excluded. 

Success in financial inclusion entails reaching these users with products that can significantly improve financial lives. Specifically, the issues of distribution, product development, and financial inter-mediation will need to be tackled at scale. It is also important that an optimal regulatory framework exists to properly incentivize all stakeholders (banks, non-bank financial institutions, mobile network operators, agents, etc.)  

The 2014 Africa Progress Report found that only one in five Africans have any form of account at a formal financial institution – how much progress do you believe has been made in the last five years?  

In recent years, mobile technology has been instrumental in driving financial inclusion on the continent. In addition, disruptive new entrants continue to gain ground. Individuals and businesses are increasingly adopting digital payments and financial accounts to interact seamlessly and efficiently, unleashing large gains in productivity and investment, and prompting greater financial inclusion. 

In Nigeria, the Central Bank is fine-tuning its policy around agency banking as a strategy to tackle the distribution problem. Agency Banking is expected to provide services such as cash withdrawal and deposit, bill payments, payment of salaries, funds transfer and balance inquiry through the use of mobile phones and mobile banking.  

FirstBank recently launched their digital platform for women, FirstGem. What do you hope to achieve with FirstGem?  

At FirstBank we recognize the importance of women in driving socio-economic growth.  

The FirstGem platform includes benefits which empower women to achieve their financial goals and lifestyle aspirations. With FirstGem, our female customers – whether working class women, business owners or students, FirstGem is suitable for a broad range of women – customers enjoy a range of services, such as advisory services on wealth creation and investments and business advisory services on business funding. In addition, they have the opportunity to benefit from specialized training on business development initiatives (online and in-class), regular insights on business opportunities and openings in various sectors and industries, and discounts at merchant outlets that offer lifestyle products and services (spas, grocery stores, event centres, etc).  

You're FBN's first Chairwoman - what have you found most exciting about this position?  

The hope and aspiration that my appointment has kindled in many women across many generations that they can get to the top of anything they apply themselves to. 


To hear more from Ibukun Awosika, join us at The Annual Debate 2018, where she will be speaking on our panel Inclusive Financing in Africa. 

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Bigger than the Banks: Natalie Jabangwe-Morris on Africa’s movement to mobile money

The wave of mobile phone use in Africa has not only connected individuals to each other, but has connected many people to mainstream financial services for the first time. In regions where populations were majority unbanked, access to mobile technology has simultaneously unlocked mobile money, and spurred economic growth in societies previously run on informal, cash-based finance. By the end of 2016, the number of registered mobile money accounts in Sub-Saharan Africa stood at 277 million.

The wave of mobile phone use in Africa has not only connected individuals to each other, but has connected many people to mainstream financial services for the first time. In regions where populations were majority unbanked, access to mobile technology has simultaneously unlocked mobile money, and spurred economic growth in societies previously run on informal, cash-based finance. By the end of 2016, the number of registered mobile money accounts in Sub-Saharan Africa stood at 277 million.

It was platforms like Kenya’s M-Pesa that changed the game and paved the way for mobile money innovation in Africa – and those such as Zimbabwe’s EcoCash are continuing this movement to digital cash. Established in 2011, in the first 18 months of doing business EcoCash registered 31% of Zimbabwe’s adult population – with 22% of Zimbabwe’s GDP passing through the platform. Its explosive popularity has seen the platform eclipse the traditional banks and has created a bridge between the informal and formal economies, transforming the way many Zimbabwe’s handle their money.

On average, mobile phone penetration in Sub-Saharan Africa is above 70%, mobile is a ubiquitous channel for serive delivery, across multiple sectors.
— Natalie Jabangwe-Morris

We spoke to Natalie Jabangwe-Morris, CEO of Ecocash, on the explosion of mobile money in Africa, the future of EcoCash – and, of course, who she's most excited to hear from at The Annual Debate.  

You're CEO of EcoCash, EcoNet's mobile payment platform. Where do you think EcoCash has had the biggest impact to date?

Natalie Jabangwe-Morris, Chief Executive Officer, Ecocash

Natalie Jabangwe-Morris, Chief Executive Officer, Ecocash

In changing the financial inclusion stratification in Zimbabwe, to an extent Africa. Before EcoCash was launched in 2011, Zimbabwe only banked 10% of its population. 6.5 years on, EcoCash banks 80% of the adult population of Zimbabwe. We have 8 million registered customers, with these, EcoCash accounts for over 70% of the country GDP and is bigger than all banks amalgamated. EcoCash accelerated financial services distribution in Zimbabwe, beyond what local banks achieved in their 100 years of operation. We also launched the first mobile-card wallet in Sub-Saharan Africa. For these milestones, EcoCash is the uncontested recipient of the 2017 Mobile World Congress GLOMO Award – Best Mobile Payment Solution.

It's estimated that six times as many people use mobile money in Sub-Saharan Africa than the global average. Why do you think mobile money has proved so popular on the continent?

Traditional banking has been largely prohibitive than inclusive, with specifity to emerging markets. Financial services eligibility in Africa is largely based on the antiqauted models of collateralisation and employment. In Africa, employment is largely informal & entrepreneurial. The mass economy is not top-down, as would be constructed in developed markets, it’s bottom-up. Bankers have missed out on those portfolios of the unknown, completely failed to profile and rearrange them to offer services through a channel that is pervasive – the mobile phone. On average, mobile phone penetration in Sub-Saharan Africa is above 70%, mobile is a ubiquitous channel for serive delivery, across multiple sectors.

60% of Africa’s population fall under the age of 25, these are the digital natives, today, connectivity will be imperative to improving access to finance for this demography.
— Natalie Jabangwe-Morris

You're speaking on our panel The Digital Dividend: Leveraging the Power of ICT. How crucial do you think connectivity is to improving access to finance in Africa?

The gains have already started to emerge. In the last 10 years alone, Africa now has a total of over 100 million active mobile wallets, this is one in every 10 adults and far exceeds South Asia, the second largest continent, by adoption of mobile payments wallets, sitting at 40 million active accounts. 60% of Africa’s population fall under the age of 25, these are the digital natives, today, connectivity will be imperative to improving access to finance for this demography. There are more mobile phones than there is ownership of toothbrushes in rural Africa, on a 1:1 ratio, tells you already, that connectivity is priority! Nothwithstanding cable access to the internet, this will inevitably drive new ways of commerce and affordability in new access to services, electronically.

EcoCash - T.png

You're one of the youngest CEO's to run a mobile money business in Africa. What has been most exciting about leading EcoCash?

EcoCash has a very young, dynamic and talented team. Driven on a culture of disruption, ability to fail fast and empowered to experiment, responsibly of course. This has been by far, the most rewarding experience. We execute swiftly, and are passionate about transformation, today! We get our thrill form seeing how impactful our solutions are at market. Needs must! A sheer belief in solving challenges through meticulous application of technological solutions. It’s my first job in Africa, after developing my financial technology career in retail and investment banking across Europe and the US and to come home and replicate world class, in Africa, has been ultimately fulfilling.

Ecocash already enables its customers to transfer money, pay for goods and services, access loans, buy airtime – where are you looking to take EcoCash in the future?

Difficult question, there is infinite opportunities in fintech, particularly on the African continent. Banks have dominated for too long, but I doubt they know well enough how to analyse unfamilair profiles, productise and monetise, aptly. A convergence of connectivity, telecoms data profiling for financial services offering, opens up other unchartered domains – for example, targeted credit. Beyond this, access to markets, if you have a wallet you must be able to pay regional, at most, global. Admittedly, foreign exchange regulation remains a challenge across Africa, but who knows what blockchain will deliver in solving for this.

Which of our speakers at The Annual Debate 2018 are you looking forward to hearing from?

All speakers, actually! I love to learn anew. So, really looking forward to all interactions.


Hear more from Natalie Jabangwe-Morris, join us at The Annual Debate 2018, where Natalie will be speaking on our panel The Digital Dividend: Leveraging the Power of ICT

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