FirstBank leads in agency banking drive

By AYOOLA OLAOUWA

In their quest to regain lost ground brought about by the lockdown introduced to halt the spread of Covid19 pandemic, commercial banks operating in the country have begun aggressive drive of their agency banking schemes.

It would be recalled that the disease, as well as the subsequent drastic measures announced by the government to prevent its spread across the country, led to a massive disruption of business activities, with banks particularly affected. Banks were forced to close down their branches, with customers resorting to money agents and electronic transfers.

This development has further exacerbated the lacklustre growth in the banking industry, with billions of naira lost to the disruption in cash flow. Most banks were forced to introduce cost-cutting measures, including rationalization of staff in other to stay in operation.

Meanwhile, as the coronavirus pandemic continues to disrupt business activities, there is a shift in retail banking, as banks prepare for a highly challenging period. BusinessHallmark findings revealed that despite the relaxation of the lockdown, many banks branches are still running skeletal operations.

Our correspondent who visited several banks branches within Agbado, Ogba, Agege and Ikeja, observed that many branches are still under lock, while those working operate with just essential staff members and close by 3 pm every day.BH gathered that the majority of banks’ staff are still running on shifts while pushing their online and mobile channels as alternative means of transactions.

Leading the way in the aggressive push for agency banking are First Bank, Ecobank, Wema Bank, Zenith Bank and GTBank.

On Monday, May 18, 2020, Ecobank launched Xpress Points Agents to provide easy banking services to every Nigerian and household within their neighbourhoods. According to the bank, the Ecobank Xpress Point enables eligible agents to carry out financial transactions on behalf of Ecobank and earn commission on every transaction processed.

Also, customers can do the simple deposit, payment and transfers in their neighbourhood rather than travel to a branch of the bank.

Speaking in Lagos, Ecobank’s Head of Agency Banking, Nike Kolawole, said the Xpress Points is also a channel that can be used for the deployment of national social intervention programmes of the government.

She further said that the Ecobank Xpress point which is in various neighbourhoods across the country is well-positioned to facilitate basic financial transactions with the process and services simplified to attend to a broad spectrum of the society.

On how the Ecobank Xpress Point scheme works, Kolawole said it enables eligible agents to carry out financial transactions on behalf of Ecobank and earn commission on every transaction processed while advising unemployed and retired persons to avail themselves the opportunity to earn extra income by keying into services offered by the bank as Xpress point agents.

She further disclosed that agency banking, in general, brings about economic and youth empowerment by way of job creation and earning extra income, adding that small savers can easily do their savings at home or near their home. This she said leads to financial inclusion of the under-banked in the country.

“For now, Ecobank has over 43,000 agents across Africa. The agents carry out financial transactions on behalf of Ecobank and earn commission per transaction processed. Xpress Points can also be used as a channel for the deployment of national social intervention programmes, especially at this time that we are fighting the impact of lockdowns due to the COVID-19.

Kolawole listed the services offered by the Xpress point agents as; cash in, cash out, fund transfer, bills payment, airtime recharge, remittance and account opening, among others.

 The services are available for “sole proprietors, partnerships, co-operative societies, microfinance banks, companies with large distribution network – like petrol stations, FMCGs, telecommunication companies, super agents, aggregators and unregistered businesses such as petty traders, hair saloon and others.

Apart from agency banking, Ecobank also boasts of a bouquet of digital channels comprising solutions aimed at delivering convenient, accessible and reliable financial services.

For instance, users of the bank’s USSD code, *326# can carry out transactions without paying session charges. The USSD platform, *326#, makes it possible to open an Xpress account and Xpress Save account instantly. The bank’s mobile banking app, Ecobank Mobile offers the option of generating a virtual card for payments for their shopping.

Another bank at the forefront of the agent banking initiative is First Bank, through its Firstmonie Agents. The bank, it would be recalled, introduced the money agents scheme in 2017, intending to bring banking close to those who live in rural areas and to every Nigerian regardless of where they are in the country.

The initiative also ensures individuals in the suburbs do not have to travel for long hours to the city for their banking activities.

Despite the challenges presented by the reduction in operation hours, as well as the peg on customers population within banking halls, First Bank has been able to bridge the gaps by helping people to meet their needs of accessing funds, as well as to send money to their loved ones.

First Bank took its agency banking a step higher by allowing customers to drop cheques for onward clearing with any major Monie agent. At the Ijaiye Shopping Complex on the Lagos-Abeokuta Expressway on Thursday, our Corresponding observed a customer dropping a cheque for clearing with a First Monie agent domiciled in the complex.

The agent, who simply identified himself as Biola, while responding to inquiries from BH, disclosed that the initiative is not a new one as it started several years ago.

“Yes, we have been receiving cheques for clearance from customers for quite some time now. However, we don’t accept cheques to pay instant cash like in banks. We only accept cheques that will wait for the mandatory 24hours clearing process”.

On why a customer could not cash a cheque across the counter as done in banks, he said they don’t presently have the facilities to do so.

“For us to do that, we must have a fast, secure and efficient IT network. We will also require security. Cheques are majorly for huge amounts of money. We are not there now. It would take time. We currently receive cheques which our dispatchers take to the bank every hour for processing”, he said.

According to the bank’s media department, “this is another way to bank without visiting a bank, which allows you to make a cash deposit, transfer money to any bank and enjoy other banking services like bills payment and purchase of recharge card amongst others.

“We currently have 53,000 Firstmonie Agents spread across 99% local government areas in the country”, the statement stated.

In order not to be left out, Access Bank Plc has intensified its agent banking scheme  Access Close, which it launched middle of 2019. A close agent is an authorized third party contracted to process clients’ transactions.

According to the bank, while its branches will focus on more complex customer obligations, the gap will be bridged by the agency banking model.

BH checks, however, revealed that the bank is far behind leaders like First Bank and GTBank in the spread. Unlike First Bank which has an agent in almost every street, Access Banks has limited agents in areas visited by our Correspondent. Only 12 Access Closa outlets were sighted by our Correspondent along the ever-busy Iju Road in Lagos. However, the figure is an improvement to what it was when the bank joined the race late in July 2019.

Another bank at the forefront of the innovation is Guaranty Trust Bank through its GTExpress. It is part of the effort to take banking services closer to existing and potential customers.

GTExpress was launched in November 2013, on an experimental basis, partnering with supermarkets, schools, cinemas, markets, restaurants and petroleum products marketing outlets to act as agents.

The platform provides services for account opening, cash deposit and withdrawal through Automated Teller Machines, ATMs, customer enquiries, bills payment and funds transfer in a cost-efficient manner through the use of non-banking retail outlets.

GTBank Express stands were sighted in major supermarkets and filling stations in Lagos visited by our Correspondent during compiling the story. The bank is only edged by First Bank in strength and visibility.

Meanwhile, other banks are wrapping up their agency banking outlets at a much quicker speed.

They include Wema Agent, Zenith Bank’s Z Money and Union Direct by Union Bank, among others.