Data transparency is essential for increasing financial inclusion among Nigeria’s underserved populations, according to fintech industry stakeholders. At the 2024 Regtech Conference, experts emphasized that accessible and transparent data can build trust and enhance financial services for millions of Nigerians.
Sarafadeen Fasasi, National President of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), highlighted the importance of data accessibility. “Trust for the underserved population hinges on what is physical, what they can confirm, and what they can verify,” he stated. Fasasi noted that despite extensive data collection by service providers and regulators, this information often remains inaccessible when needed.
“107 million Nigerians have enrolled for the National Identity Number (NIN), yet people are still asked to provide their information for palliative measures. What is the purpose of collecting data over the years if it is not effectively used?” he questioned.
Enhancing Financial Innovation and Access (EFINA) reported that over 300 out of Nigeria’s 774 local government areas lack bank branches. The integration of Bank Verification Numbers (BVN) with NIN details is crucial for accessing financial services, but this process is often managed by city branches of commercial banks, creating barriers for rural populations. EFINA’s data shows that over 25 million Nigerians without NINs are unbanked, and 35 million without BVNs are also unbanked, highlighting the dire need for improved data utilization.
Last December, the Central Bank of Nigeria (CBN) mandated that all bank accounts be linked to a BVN or NIN. Fasasi criticized this move, pointing out that it underscores the weaknesses in Nigeria’s database infrastructure, as people are forced to disrupt their schedules to comply with the mandate.
During the conference’s panel discussion, Chika Nwosu, CEO of PalmPay, discussed the trust issues arising from a lack of transparency in digital payments. “Some digital payment providers are not transparent about their fees, leading to hidden charges that customers only discover after using the service. This results in a loss of trust in the system,” Nwosu explained.
Nwosu also underscored the importance of data privacy and security. “Addressing data privacy concerns is crucial. How do you handle the data you collect from people, how do you store it, and is their data safe with you?” he asked.
Branke Mracajac, CEO of 9PSB, stressed the need for ethical data usage and compliance with data protection laws. “We need to embrace the ethical use of data, ensure compliance with data protection laws, and use encrypted data to enhance data transparency,” Mracajac added.
The experts agreed that improving data transparency and accessibility is a key step towards financial inclusion for underserved Nigerians, fostering trust and enabling broader access to financial services.
