Visionary microfinance banks are implementing mobile banking systems in Nigeria

In Nigeria, alternative payment channels are making financial services more affordable and more accessible for individuals. Visionary Nigerian microfinance banks are adapting to this market trend by offering mobile banking services to their clients.

Mobile banking offers a suite of essential financial services

Mobile banking starts with an individual and their mobile phone. Individuals with smart phones can download a mobile banking app and feature phone owners can do their banking using USSD. With mobile phones – smart or feature – individuals can pay any kind of bill, from utility payments to school fees to loan repayments.

Individuals also have a card that is connected to the smartphone application or the mobile number of their feature phone. With this mobile banking card, like any other credit or debit card, individuals can purchase goods in stores that accept non-cash payment. They can do cash-in or cash-out transactions at ATMs.

Microfinance banks are embracing mobile banking as a competitive edge

Through collaboration with their core banking system providers, MFBs can roll out mobile banking services to their clients. With a flexible core banking system like Instafin, financial institutions can select an electronic payment provider like 3Line and integrate the provider’s payment system with their core banking system. This links the client’s account at the financial institution to the mobile banking card and application which is provided by a third-party fintech.

Efficient growth through partnerships with fintech providers

To keep up with changing client demands for digital financial services, MFBs usually have two options: design and build the product or service internally or to partner with a fintech provider that is offering the product or service.

The first option lends itself to complete customisation, which can be an advantage. However, developing the product or service internally requires IT specialist skills, upfront capital investment and funds to support ongoing improvements.

Microfinance banks are finding success through partnerships with fintech providers because they are:

  1. More affordable: The fintech providers has already developed the product or service for many customers, spreading the cost of development
  2. More efficient: Fintech integrations can be done quickly, without losing clients to competing MFBs in your market
  3. More effective: Partnerships enable your MFB to focus on your core competency which is serving your clients, leaving tech professionals to handle your IT needs

Ready to be more competitive in your market?

For more information about how Oradian enables your microfinance bank to rollout new products and services like mobile baking, contact us.