Providing Alternative Channels to Cash Transactions

With the take-off of the cash limit policy in Lagos, Obinna Chima examines various alternative channels that had been installed by some commercial banks

The Central Bank of Nigeria (CBN) cash policy, which took-off in Lagos State about a fortnight ago, has no doubt thrown a lot of challenge to both bank customers and operators.

The policy, which has been trailed with varied reaction, has seen a lot of customers grappling with the new cash withdrawal/lodgement regime.

Of course, commercial banks have since stepped up their awareness exercise on other alternative channels, especially the Point of Sale (PoS) terminals.

The cash-less policy seeks to limit daily cash withdrawal/lodgement by individual and corporate organisations to N150, 000 and N1 million respectively.  However, individuals and organisations that wish to withdraw more than the specified amount would be made to pay administrative charges. The policy would later be extended to other cities such as Abuja, Aba, among others, by June this year, the CBN had said.

Assessing the Lagos Situation
The commencement of the policy in Lagos State has continued to generate varied reactions. While some residents of the State welcomed the initiative, most people argued that the banking sector regulator seemed not to be fully prepared for the implementation of the initiative, as they insisted that the alternative electronic payment channels expected to drive the policy, were yet to be fully installed in most part of the state.

Findings by THISDAY showed that while shopping malls, clubs and other social centres in Victoria lsland, Lekki and Victoria, had witnessed increase in Point of Sale (PoS) machines deployment, which is largely expected to drive the process, most residents in other part of the state are not even aware of the take-off of the policy. 

However, banks in the state last week stepped- up the level of awareness on the policy. THISDAY learnt that while some banks rejected cash lodgement/withdrawals above N150,000 and N1 million for corporate organisations, those who collected such amount sensitised such customers to embrace other alternative payment/lodgement channels.

Most of the banks had to communicate to their customers through text messages, e-mail and even telephone calls, to advise them on the new policy, its implication and the expected benefits.

UBA's  Solution
Prior to the take-off of the policy in Lagos, United Bank for Africa Plc (UBA) had introduced the first mobile money service in the country – the U-Mo. The launch of the product, according to the bank, was in demonstration of its commitment to bring convenient financial services to its customers in the economy in view of the new cash policy.

According to the Group Managing Director/Chief Executive Officer, UBA, Mr. Phillips Oduoza, the U-Mo mobile money services would revolutionise the banking industry just as the GMS did to the telecommunications industry.

While describing U-Mo as a platform to store money in one's phone and do transactions, the UBA boss noted that the initiative was a major step towards realising the cash-less economy.

Oduoza stated that, out of about 80 million Nigerian adults in the country, only 25 million people had bank accounts while the rest 55 million were unbanked, a situation he hoped, mobile money would be able to remedy.

"With this initiative, the unbanked and semi-banked population would have access to banking services. Banking penetration is still very low and I am commending the Central Bank of Nigeria for this noble initiative as this will reshape the way we bank' he said.
He said that following approval in principle given the bank to start mobile money services, U-Mo test run had been on for about a year, until the final approval that came on November 17, last year.

On his part, the Chief Executive Officer, Afri-pay - the company responsible for implementing the mobile money arm of the bank, Mr. Yinka Adedeji, said the product targeted mainly the unbanked, adding that it would provide the masses affordable banking services with embedded security features to ensure that users of the product do not experience loss of money.

"We will also provide various levels of transactions limits. U-Mo Silver is offered for customers with very little information and it allows them to spend or pay up to N3,000 per transaction and up to N30,000; U-Mo is Gold for customers with information that includes address verification and will allow them to spend or pay up to N10,000 per transaction and up to N100,000 per day while U-Mo Platinum for customer with information that includes address verification and a reference will allow customers to spend or pay up to N100,000 per transaction and up to N1,000,000 per day," he added.

He emphasised that the U-Mo mobile money was phone-only account, designed to promote savings to mobile subscribers by offering higher interest rate on savings and capability to spend cashless by providing services such as buying airtime for self and for others, bill payment, send money to any mobile number.

Adedeji added: "U-Mo Mobile money is available to all mobile subscribers irrespective of GSM service provider. Thus, anyone with Glo, Etisalat, Airtel or MTN can subscribe to U-Mo.
UBA had also in a bid to stimulate seamless trade and commerce across Africa, introduced three trade related products -Afritrade, AfriCard and AfriCash.

Oduoza had explained that the products were designed to facilitate trade transactions across the continent.

He said that UBA AfriCash is available in all the 16 countries -Nigeria, Ghana, Sierra Leone, Cote d'Ivoire, Liberia, Cameroon, Uganda, Chad, Burkina Faso, Senegal, Benin, Gabon, Guinea, Kenya, Zambia, Tanzania, where the bank is located.

The UBA boss noted that the introduction of the new products was premised on the value proposition by UBA as it consolidated its operations in the continent.

"Our continent is full of potentials and intra-country trade within the continent will see the potentials translating into growth and development, and that is exactly what these products bring to African trade and commerce," Oduoza said.

GTBank
Beyond the new cash limit policy, GTBank, which had recorded remarkable growth in its customer base over the years, have been developing solutions and other alternative channels that would make banking easier for its customers.

For instance, the commercial bank recently announced the opening of five additional e-branches that facilitate as part of efforts to facilitate the cash-less policy, provide convenient, prompt and reliable services to its customers.

THISDAY checks at one of the  e-branches centre located at Opebi, showed that a lot of customers were enthusiastic about the various electronic devices at the centre.

The e-branches carry out operations such as cash withdrawals via ATMs; Cash deposit ATMs and internet banking.
Similarly, GTBank also offers a number of cards that allows customers access their account information and perform basic banking transactions quickly, safely, and conveniently without visiting any of its banking halls.

Another alternative by GTBank –the Internet Banking, is also a robust channel designed with the state-of –the-art technology that gives customers unlimited access to their accounts and allows them conveniently perform over 90 per cent of their bank transactions online real-time.

"With internet banking, you can, enjoy the convenience of managing your finances quickly and easily at a time that suits you. You can bank safely and securely – at work, home or abroad.
Some of its benefits include easy access to your account(s) from anywhere in the world, online real-time account monitoring facility, convenience of conducting banking transactions from comfort of home/office, guaranteed security for all your online transactions, easy access to bank information and products, effective, cheaper and easier way for our customers to communicate with banks," the bank explained.

Guaranty Trust Electronic Notification System (GeNS), is another of the bank's e-banking services are reliable and flexible ways for customers to manage their finances efficiently and conveniently. It is a new notification system, which provides customers with details of transactions on their account(s) via electronic mail and text messages.

"One of the benefits of this service is that it gives you prompt knowledge of transactions on your account(s), thereby enhancing your personal finance management and aids you in making your business and financial decisions. Some benefits of GeNS includes that customers have updated position of their accounts at any point in time, it offers convenience and easy monitoring of account and better management of finances.

"The GTBank Automated Payment System (GAPS) is a web-based service that facilitates the processing of vendor (and other) payments in batches, using either a dial-up connection to the bank or a secured (https) connection over the internet. It also gives you online real-time access to your account on 24/7 basis," GTBank said further.

Managing Director, GTBank, Mr. Segun Agbaje had said: "We have always sought new ways to serve our customers better.  Operationally, these efforts centre on providing convenient and affordable services, without compromising quality.  Many times, this has entailed the introduction of cutting-edge technology to ensure our customers can access banking service comparable with what is obtainable internationally."

First Bank
For First Bank of Nigeria Plc, its Group Managing Director/Chief Executive, Mr. Bisi Onasanya, assured customers of the financial institution of seamless e-transaction in all its branches as the policy takes off in Lagos.

Onasanya said the bank had put in place a world-class IT infrastructure to drive its e-payment services across transaction touch points. It included the Automated Teller Machines (ATMs), PoS, FirstOnline, the Bank's internet banking; FirstBank Visa Card; FirstBank MasterCard; FirstBank Classic Card; FirstBank Naira MasterCard; FirstBank Visa Gold Credit Card; Cash Deposit ATM, amongst others.

He explained: "The FirstBank Visa Card is a dual currency Chip and PIN Payment card, which can be linked to both Naira and Dollar account. It gives you online real time access to your funds to make payment across multiple channels such as ATMs, PoS terminals and web merchants. Its benefits include convenient and portable access to funds, it is an international debit card accepted at over 29 million locations and for cash withdrawals at over 1.8 million ATMs in over 200 countries worldwide; wherever the Visa logo is displayed.

"The FirstBank MasterCard is a dollar-denominated credit card recognised and accepted wherever the MasterCard logo is displayed worldwide. It a safe and convenient credit card that is ideal for every day purchases on all available channels.
Similarly, the FirstBank Classic Card gives cardholder online real time access to your funds through an ATM for cash withdrawal, balance enquiry, funds transfer, payment of bills and others."

According to the First Bank, the bank's Naira MasterCard is also an internationally accepted debit card issued in partnership with MasterCard Worldwide. He stressed that the card allows a customer 24 hours access to his/her current or savings account within and outside Nigeria.

"Visa Gold Credit Card is an international cash-collaterised credit card, issued in partnership with Visa International. It is important to point out that even before the new CBN policy came on stream, we had taken some proactive measures by rolling out various e-transaction services and products." he added.

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