Despite exponential growth recorded in the nation’s telecommunications sector over the years and sustained drives by the Central Bank of Nigeria, CBN, to promote e-transactions in the banking sector, indications are that only a few percentage of bank customers currently use Automated Teller Machines, ATMs, for transactions.
A study conducted by Access to Financial Services in Nigeria, EFInA, in its 2014 last survey showed that in the past decade only 53 per cent of the 25.9 million adults, who have a bank product, use their ATM cards for banking transaction.
The survey also indicated that 46.3 per cent of the adults conduct transactions most frequently at their bank branches, confirming the fact that adoption of e-payment channels such as POS machines still remained low 10 years after the telecoms revolution.
The study revealed furfather that 0.3 per cent of the 25.9 million adults use mobile phones for banking transaction, while 0.1 per cent of that same population uses the internet for banking transactions.
According to EFInA, the reason given for not wanting to use the ATM or POS machine was that they would rather deal face to face with a person than with an electronic device, saying that 58.5 per cent think it is not safe using the new financial technologies.
On the uptake of mobile money, the survey showed that though 11.9 million adults are aware of mobile money, only 0.8 million currently uses mobile money services and of the 0.8 million mobile money users, only 0.5 million are registered, while 0.3 million are not registered.
Also on the usage of mobile money amongst 0.8 million mobile money users both registered and unregistered, the study indicated that the mobile money service most frequently used is airtime purchase, while the first transaction conducted using mobile money was also airtime purchase.
While 42.1 per cent use the mobile money platform for airtime purchase, 20.2 per cent, 14.4 per cent, 8.8 per cent, and 7.1 per cent, use it for sending money, receiving money, paying for goods or services and paying bills respectively.
Capturing the report on awareness of/source of information for mobile money, the study showed that 87.3 per cent of the 25.9 million adults in the study are not aware of the existence of mobile money.
According to EFInA, only 12.7 per cent are aware of the mobile money facility, adding that of the number 36.8 per cent got to know about it through the television, while 8.3 per cent knew about it through the internet.
Others, who got to know through friend/family- 36.6 per cent, radio- 28.4 per cent, bank- 21.9 per cent, SMS- 14.7 per cent and newspaper, 13.6 per cent.
The study projected that a potential demand for mobile money for the payment of school fees may hit 71.5 per cent, adding that those that are currently using or are interested in using mobile money would consider using the facility for paying school fees, transport, and hospital bills.
Others however said they would like to use mobile money for insurance/ micro insurance, pension contributions, receiving pension, loan disbursement, loan repayments, international remittances, government taxes/levies, hotel bills and airline tickets.
EFInA reported that the low level of awareness of financial terms/products could hinder the uptake of products such as mobile money, noninterest banking and micro insurance.
It added that only 40.9 per cent of the adult population said they are not father miliar with the term ATM/ Debit card, while 32.1 said they are familiar with the term and 27.0 per cent said they cannot explain what it means.
On mobile money, 79.2 per cent said they are not aware of the term while 15.6 per cent claimed they are familiar with the term and 5.2 per cent said they cannot explain what it means.
Thanks for sharing this study about how most Nigerians do not use ATM's. It was very interesting to read and learn more about.
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