In 2012, Nigeria took major steps in its journey by
launching the National Financial Inclusion Strategy (NFIS). The main goal of
the NFIS is to ensure that 80per cent of Nigerian adults are financially
included by 2020. Before this, the formal use of financial services by the
adult population stood at 36.3per cent in 2010. To achieve the 2020 goal, the
Central Bank of Nigeria (CBN) introduced strategies to spike innovation in the
financial services sector in Nigeria and by 2017, one amongst the achievements
was that the CBN had given over 20 licenses to mobile money operators, which
has currently grown to 21.
According to 2018 data from Enhancing Financial Innovation
and Access (EFInA), 38.1million of Nigeria’s 106million (18years and above)
adults or 36 percent of Nigerians remain completely financially excluded.
In a recent survey by Augusto & Co on Consumer Digital
Banking, only 34per cent of the respondents said they had experienced the
service of digital banks. Only 17per cent of respondents above the age of 55
are aware of their services, while for people aged 41-54, the awareness rate
stood at 31per cent. This spells the need to deepen the financial inclusion
drive if Nigeria is to attain the NFIS target and accelerated economic growth.
The apex bank may have missed the 2020 target of 80 percent
for financial inclusion, but it stands a better chance of meeting the target of
95per cent by 2024, as industry players have argued that to achieve the NFIS
target for inclusive economic growth, the financial sector must strongly
leverage technology (mobile and digital channels) to promote financial
inclusion and enhance access to financial services for the unbanked and
underserved segments of the population.
One of the financial institutions that has continued to
leverage on technology to revitalize the industry via deploying its huge
resources and vast networks to deepen financial inclusion in the country for
inclusive economic growth is Heritage Bank Plc, Nigeria’s most innovative
banking service provider.
The MD/CEO of Heritage Bank, Ifie Sekibo, affirmed that
banks cannot push financial inclusion unless they also push secured technology
inclusion.
According to him, Heritage Bank has continued to entrench
financial inclusion across board via creating access to accounts and other
financial products, savings, mobile money systems and payment systems that
provide opportunities for financially excluded Nigerians and Micro, Small and
Medium Enterprises.
Introducing HB API Sandbox & Banking as a service via
One Pipe
The Bank launched an API Sandbox to accelerate the ideas of
technology entrepreneurs to build innovative and commercially viable products
that were birthed through HB LAB. This platform provides a suite of financial
and non-financialAPIs targeted to meet the needs of FinTech, Tech SMEs, and
Communities. Our APIs grants Tech Companies, third-party developers, and
non-Fintech companies access to multiple payments and financial services
required by their customers.
Following the launch of HB’s API Sandbox, the Bank partnered
with API aggregator Companies to extend the Bank’s API services to a wider
audience, layering their value-added services to deliver our BaaS platform.
Banking as a Service (BaaS/Open Banking) is an end-to-end business process that
allows FinTech and other third-party service providers to offer core financial
services to their customers by integrating with the Bank via our readily
available APIs. This is a billed service that also provides relevant data
insight required to pursue aggressive retail accounts acquisition by leveraging
the aggregator robust retail prospect pipeline.
Redefining digital banking space with ‘Octiplus’
Sekibo promised that his bank would continue to drive
financial inclusion through a robust, innovative, and advanced digital banking
solution, ‘Octiplus’ which it recently launched.
Octiplus is a bank-agnostic, all-in-one digital banking
application, which grants users access to a bouquet of financial, lifestyle and
social networking features with the added convenience of converging card-based
payments within one application irrespective of the issuing Nigerian bank. Ifie
Sekibo stated that, “with Octiplus, we are redefining the concept of digital
banking for the discerning mobile user, as the app is equipped with several
exciting features that reiterate the bank’s commitment to expand its digital
architecture and modernize its interactions with the banking public,
irrespective of your preferred financial institution.”
Octiplus promises an intelligent Omni-channel experience
which augments the usual transactional features including bills payment, funds
transfer and airtime recharge with its unique ability to facilitate person to
person/group interactions which encourages small businesses and a thriving side
hustle for young professionals. The App is now available for download on the
Google and iOS App Stores.
Catching them young with HB BUD Account
HB Bud account is a savings account for children and the younger demographic aimed at introducing financial literacy and inclusion. The account can be opened in trust for a child by the parent/guardian who will be the primary account holder with the responsibility of running this account until their child attains adulthood and can solely operate their own accounts or possibly move to other age-appropriate products.
This product was initially
launched in 2014 as a unique proposition to cater mostly to the educational needs
of children and young adults who are preparing and saving up for further
education and, as well, deepen brand visibility and increase the bank’s market
share. However, some operational exigencies and regulatory framework have
necessitated the modification and adjustment of this product to serve the
customers optimally. Children and teens from 0 to 18yrs are the target market.
The features are unique as outlined: Access to cash backed
loan by parent/guardian/sponsor for school fees/education loan. You can access
up to 70per cent of your balance held with the Bank as cash backed loan.
Thecustomer must have run the BUD account for a minimum of 6 months to access
the cash backed loan. Ease of saving through standing order instructions.
Access to exclusive events. Free participation in the BUD MINI career mentoring
and coaching sessions once a year. Opportunity to act as a Heritage Bank
Executive Committee member for one day.
Catering for the unbanked via HB Starter Product
This is the banks flagship CBN KYC Tier 1 savings account to
cater for the unbanked. It is a level 1 entry into savings account category in
Nigeria, in which an individual can open without having the mandatory
requirements/documents to open a standard or regular account in Nigeria. This is
one way of ensuring that all citizens of Nigeria are financially included since
the account can be opened with or without a smart phone at the bank or online.
In essence, this type of savings account doesn’t require any utility bills, or
even an ID to open.
Most people who fall under this category usually do not see
the need to open an account because they find it easier to save whatever money
they have in their houses. This category of people wants to avoid bulky manual
account opening process and have a better time management. This product is very
precise and requires minimum account opening documentation, also it can be done
at the comfort of one’s home. Customers can in addition be assisted by the
Bank’s relationship managers and sales teams. Also, customers can get on the
bank’s website to initiate a new account opening process from start and receive
the account number at the end of the process.
Product targeted at individuals across all market segments
This is known as HB Individual Current Account Product,
which is a checking account for all individuals across market segments above
the age of 18years. This account has been made seamless with unique features
for individuals’ access to loan products, minimum balance of N0.00, No COT on
all transaction, account opening balance N5, 000 and access to clearing check
book.
Customization of payment gateway on HB CheckOut and Virtual
Accounts
Heritage CheckOut is a fully integrated payment processing
platform with infrastructure for digital payments across Africa. Olusola
Longe-Okenimkpe, Divisional Head, E-Business & Collections disclosed that
the platform provides an underlying technology platform that allows businesses
to receive and issue payments from anywhere in the world, with robust inbuilt
fraud management, compliance, and security applications.
She also defined Virtual Accounts as series of off-balance
accounts whose total balance mirrors the balance in pool account. According to
Olusola, pool account is linked to all the virtual accounts and the balance in
the pool account mirrors the total balance in the virtual accounts.
Opportunities for financially excluded with HB Business
Account
The Heritage Bank Business Account is a cost-effective
current account that provides flexible, affordable, and transparent pricing
grid based on debit monthly turnover covenant. The product is targeted at all
Micro and Small Enterprises of SME and Retail segments.
Ensuring seamless transaction using HB transfer code
The transfer code *745# of Heritage bank guarantees seamless
usages and reduces the stress of going to the branch of Heritage bank to make
payment. Just like other banks, you can use Heritage bank mobile banking code
which is *745# to check your account balance, transfer money to Heritage bank
or other banks, pay for utility bills and cable TV subscription, pay for
church’s services everywhere you are using your mobile phone.
Capturing educational sector via Alumni Banking service,
Acada Portal Solution
To further capture individuals in educational sector into the
financial inclusion space, Heritage Bank unveiled the Alumni Banking Service
and Acada Portal Solution which are internet-based solutions that seamlessly
integrate school’sportal and Alumni platforms that benefit the different
stakeholders and complement efforts in attaining the best global practices in
school management. Alumni Banking service is an educational provision by
Heritage Bank that seeks to utilize and track, engage, endow, and invest a
model to help secondary and tertiary educational institutions create modern
alumni systems that contribute to their financial stability just like great
alumni do in the best global schools.
Inclusion of creative industry, e-sport gaming on HB YNSPYRE
Account
YNSPYRE Account is a product targeted specifically at the
creative economy populated by not only youths in video and film, and music. It
goes much more than that as it involves people in technology, the creative
industry and gaming as part of the creative industry.
Addressing the press about the initiative in gaming as a
creative endeavour, Dike Dimiri, Heritage Bank Regional Executive, Lagos, and
South-West explained that the involvement of the bank is to identify
income-earning opportunities for some people in the economy.
According to him, “HB has designed a product that identifies
and finds a mechanism that guides Nigerians in gaming or e-sports. The bank is
set to revolutionize e-sports by bringing it to an acceptable level attained by
football, lawn tennis and other crowd pulling games.”
Heritage Bank is fast changing the narratives of the banking
landscape through the adoption of more secured technology (product and
channels) for seamless services that guarantee the larger part of the
population is involved in economic activities as well asbeing financially
included.
For this to be effective, Sekibo affirmed that the
population must access financial services and products which ensure that
households and businesses irrespective of income levels have access to and can
effectively use the appropriate financial facilities they need to improve their
lives and further their savings and investments.
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