MasterCard presented its reports on the Road to Inclusion. The report covers individuals in emerging markets of Nigeria, Egypt, India, Indonesia, Vietnam and the Philippines that been excluded and underserved.
The term inclusion as used in this circumstance should be
clarified. Inclusion in this stance means
enabling individuals who are unbanked to move from cash to alternative form of
payment either prepaid card, mobile wallet and virtual payments.
MasterCard commissioned this report in order to understand
the dynamics of the financial services industry especially in the emerging
countries and also to address bringing in as many people into the main
financial stream.
Omokehinde Ojomuyide, VP and Area Business Head West Africa
said that the purpose of the report is to “Understanding the needs and attitudes of
consumers provides us with important insights that will help us serve them
better. For instance, communicating bank safety and interest rates could
potentially encourage the financially excluded and the financially underserved
to use electronic payments more often than cash. With the right approach there
is huge potential to bring many people into the financial fold.”
Based on the study the following are the Characteristics of
the Nigerians excluded from the financial services.
Demographics
|
|
Average age
|
28 Years Old
|
Secondary Education
|
91%
|
Have Employment
|
64%
|
Household Monthly Income
|
$200.00
|
Reasons for not having a
bank account
|
|
Does not have enough Money
|
41%
|
Don’t want or need a Bank Account
|
17%
|
Need Cash on a Daily Basis
|
4%
|
Main Purchases of this
group
|
|
Telecommunications
|
93%
|
Clothing
|
92%
|
Transporation
|
91%
|
Food
|
73%
|
Prepaid Card Appeals
|
|
Unique and different
|
60%
|
Relevant
|
60%
|
Likely to apply
|
58%
|
Have heard about prepaid card
|
65%
|
Have used prepaid card
|
0%
|
Prepaid will be of benefit
|
53%
|
Prepaid Cards help keep control of their spending
|
26%
|
Access to Technology
|
|
Standard Mobile Phone
|
85%
|
Smart Phone
|
32%
|
Laptops
|
5%
|
Desktops
|
0%
|
Tablets
|
2%
|
Based on the analysis, majority of Nigerians that are
excluded from the financial services have access to mobile phones. The
mobile phone could be used as an entry point into the financial system for
these excluded individual using their phone as an additional verification and
with this could help bridge the gap between the formal financial services
sector and the millions of underserved or unbanked individuals.
Here is a link to the MasterCard Report on Financial Inclusion:
Part 2: We will identify
the players (stake holders)
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