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Financial Inclusion: PSB to the Rescue?

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Financial Inclusion: PSB to the Rescue?

Financial Inclusion: PSB to the Rescue?

The Central Bank of Nigeria is getting more aggressive in executing its plan to get all Nigerians served by the nation’s financial sector. It has launched what it called Payment Service Banks (PSB), a banking model that will leverage technology to promote financial inclusion and enhance access to financial services to the rural poor, low-income earners and financially excluded of the society. Bamidele Famoofo writes

The ultimate goal of the Central Bank of Nigeria under the leadership of Mr. Godwin Emefiele, is to achieve a 20 per cent financial exclusion rate by 2020. As at October, 2019, the CBN said exclusion rate dropped to 36.8 percent from 46.3 percent as at when it started implementing its policy to enhance financial inclusion in Nigeria which was introduced in 2012.

The purpose of the National Financial Inclusion Strategy (NFIS), according to the CBN, was to provide Payment Service Banks across Nigeria with the aim of breaking the traditional barrier preventing financial inclusion and promoting low cost, secure and convenient financial services across the country.

The Bank in August officially launched the PSB service with licenses given to three operators to blaze the trail.

Director, Financial Policy and Regulation, CBN, Kevin Amugo, said PSBs are envisioned to facilitate high-volume low-value transactions in remittance services, micro savings and withdrawal services in a secured technology-driven environment to further deepen financial inclusion and help in attaining the policy objective of 20 per cent exclusion rate by 2020.

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