Mobile banking has developed as a strong instrument for financial inclusion, allowing users to use their mobile devices to access financial services and perform transactions.
Financial inclusion and literacy are critical to promoting inclusive economic growth and allowing individuals to determine their financial fate. Momo PSB’s mobile banking platform has proven to be an effective instrument in reaching these objectives.
According to a report by International Monetary Fund (IMF), “Financial inclusion in Nigeria has had obvious success, with residents continually being onboarded into the banking industry.
“However, total exclusion rates continue to exceed official expectations, owing in part to a lack of financial literacy.
“Going forward, Nigeria’s financial inclusion strategy should more systematically leverage rapidly developing digital instruments.
“Uptake of digital financial services, notably mobile money, is still lower than in peer countries, and overcoming this would require improving digital financial literacy, upgrading digital infrastructure, and promoting incubation and sound practices of fintech firms.
“Nigeria’s CBDC also has an enabling potential if accompanied by a comprehensive package of supportive policies,” IMF said.
Mobile gateways were used 108.14 million times in January 2023, a 230.72 percent rise from the 32.69 million times they were used in the same period last year. During the review period, the value of mobile transactions increased by 124.85% to ₦2.37 trillion from ₦1.05 trillion in January 2022.
According to Eli Hini, CEO of MoMo PSB, the mobile money operator would invest in financial education, mobile device financing, and other financial solutions to overcome Nigeria’s financial inclusion gap.
He made the remarks at the MoMo Stakeholder Forum, which was hosted to commemorate the first anniversary of Nigeria’s Payment Service Bank. On May 17, 2023, the event was hosted at the Lagos Continental Hotel.
Eli, after identifying financial illiteracy as one of the barriers to financial inclusion said, “Financial literacy is key in the drive for financial inclusion.
“This is why we are committed to investing in customer education to ensure people understand basic financial solutions and are able to use them to improve their lives.
“This also includes sensitisation to help people understand the value of having access to financial solutions and the impact it has on the quality of their lives.”
According to Eli, MoMo PSB “intends to invest in the provision of mobile phones to rural locations to help improve access to phones which will enable us to provide financial services to our rural communities.”
While access to financial services is critical, financial literacy is critical in ensuring individuals make informed financial decisions. Momo PSB understands the importance of financial education and goes above and above to provide its customers with necessary financial knowledge.
Momo PSB’s action is line with the achievement of the Sustainable Development Goal (SDG) 8 – Decent Work and Economic Growth. This goal sesks to “Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.”
Because of their extensive distribution and penetration into rural areas, organizations such as MoMo PSB will address the issue of limited access to traditional financial institutions. They believe that we can provide financial solutions to all Nigerians in order to close the gap.
Mobile banking has emerged as a game changer in terms of closing the financial gap between traditional banking and neglected groups. The company plays an important role in fostering financial inclusion and financial literacy.
Momo PSB enables the unbanked and underbanked communities to participate actively in economic activities and manage their funds efficiently by removing the need for physical visits to banks and lowering transaction costs.
Launching a product without educating your target audience will lead to a knowledge gap and low results. It is important to educate all your consumers, leave none behind and create more ways to positively impact your consumers.