Adimike: Banks, FinTechs Must Focus on Rural Areas to Capture 40m Unbanked

Chief Executive Officer (CEO) and Co-founder of SmartSaver Technology Limited, Mr. Ekene Adimike, has advised commercial banks, Financial Technology (FinTech) companies and other financial institutions to channel their resources to reach more people in rural areas in order to capture the over 40 million Nigerians who lack access to financial services.

Speaking with THISDAY in Lagos,  Adimike, whose company recently launched the finance app – SmartSaver App, stressed that the Central Bank of Nigeria (CBN) and other regulatory bodies must intensify efforts towards engendering financial literacy in the rural areas to achieve financial inclusion targets.

He said 40 million people unbanked in Nigeria is a huge number that can even take two countries, adding that FinTechs in Nigeria are not helping the issues because they are majorly concentrated in urban areas.

He said: “Over 40 million people unbanked is a very huge number that can even take two countries. However, the truth is that FinTechs in Nigeria are not helping the issues because they are majorly concentrated in urban areas.

“The FinTechs and banks concentrate most of their resources in urban areas because of security, cost etc. However, while the majority in the urban areas have been banked, most in the rural areas are the unbanked.

Adimike contended though most FinTechs are concentrated in urban areas where there are some level of security, they should also establish branches and centres in rural areas, this way, they can cater for the needs of the unbanked.

He also advised the CBN to do more work in financial education so that the huge number of unbanked can be financially literate and the number reduced.

The Co-founder of SmartSaver equally advised the apex bank to license more financial institutions that would focus on rural areas, and bring down the requirements for securing such licences.

“I will advise that inasmuch as we are concentrated in urban areas where security is guaranteed to some extent, we should also establish branches and centres in rural areas. This way, we can cater for the needs of the unbanked.

“Another reason for such a huge number of unbanked is the level of illiteracy; the people do not get enough opportunities to learn about happenings in the banking sector and how to key into it. Many rural dwellers don’t have BVN. Therefore, the CBN needs to do more work in financial education. They should also license more financial institutions that will focus on rural areas, and bring down the requirements for security such licences,” he said.