Moniepoint Dives into Retail Banking, Setting High Targets

Moniepoint Inc., a renowned fintech company in Nigeria, recently declared its entry into the personal banking segment. Having already established its dominance in the business side of digital financial services, this move promises a deeper financial inclusion for the Nigerian population. Babatunde Olofin, the Acting Managing Director of Moniepoint Microfinance Bank, conveyed this decision during a media gathering in Lagos.

Key Highlights:

  • Moniepoint processes an average of $12 billion in monthly transactions.
  • The firm currently serves over 1.6 million businesses in Nigeria.
  • They aim to bring on board 4.8 million retail customers within the first quarter of their personal banking venture.
  • Olofin emphasizes that the transition into personal banking is in line with the financial inclusion goal set by the Central Bank of Nigeria.

Strategies for Financial Inclusion

Moniepoint has been driven by its mission to democratize financial services in Nigeria. They’ve showcased this through their widespread agent presence termed as ‘man bank.’

Features of the ‘Man Bank’ initiative:

  • Agents are available nationwide, ensuring service accessibility even in regions without physical banks.
  • The service quality and reliability match that of a regular banking hall.
  • Agents are not constrained like ATMs and hence can always dispense cash.
  • Reduced transportation costs for users by providing services closer to their locations.

Coping with Growing Digital Transactions

With the aftermath of the cash scarcity event earlier this year, there was a spike in the inclination towards cashless transactions among Nigerians. Recognizing this, Moniepoint invested heavily in scalable infrastructure to support this surge. Their infrastructure is designed to be elastic, adapting to growing transaction volumes seamlessly. Monitoring tools are in place to supervise transaction growth and make necessary adjustments. Their resilience was showcased during peak transaction times, ensuring customer satisfaction.

Past Performance and Future Projections

In 2022, Moniepoint had a remarkable performance:

  • Processed transactions valued over $100 billion.
  • Total transactions numbered 1.7 billion.
  • Loan disbursement of $1.4 billion with a Non-Performing Loan percentage under 1%.

Entering the retail banking sector, Moniepoint is up against formidable competitors like Opay, Palmpay, Kuda, Fairmoney, and Carbon. Yet, they are optimistic about gaining a significant market share, especially with the ongoing surge in digital transactions in Nigeria.

  • Data reveals that Nigerian digital payments reached an average monthly volume of 818 million for the initial five months of 2023.
  • The yearly transaction count is projected to hit 9.7 billion, nearly doubling the 2022 figure.

Moniepoint’s Distribution Strategy

Moniepoint’s success formula hinges largely on its distribution strategy. Having over 1.6 million businesses and a vast network of more than 10,000 agents across Nigeria, the company aims to utilize this massive network to allure retail customers.

  • A key component of their strategy is the ‘3:1’ model; attracting three retail customers for every business client they currently serve.
  • The company also focuses on assisting individuals without smartphones. Agents will help these customers in opening personal accounts and provide them with transaction cards.
  • This ensures that financial services are within reach, without the need for physical banking infrastructures.

Conclusion

Moniepoint’s foray into retail banking stands as a testament to its commitment to achieving deeper financial inclusion in Nigeria. With robust strategies and a resilient infrastructure, they are well-positioned to transform the fintech landscape, making financial services accessible to all.