Evidence worldwide has shown that access to financial services contributes both to economic growth and wealth creation, and may therefore be very vital to tackling the ‘poverty’ trap in Nigeria. Sadly, statistics say less than 50% of women and just about 57% of men in Nigeria are financially included. A survey conducted in Nigeria in 2008 by a development finance organization, the Enhancing Financial Innovation and Access revealed that an average of 53% of adults were excluded from financial services at the time. This was one of the reasons behind the launch of the National Financial Inclusion Strategy on 23rd October 2012 – to reduce the exclusion rate from 53% to 20% by 2020. Agent banking and mobile money operations were listed among tools to drive the strategy.
As part of moves to deliver financial services to the underserved, unbanked and economically underprivileged, First Bank of Nigeria Limited in July 2017 started the Firstmonie agent scheme, empowering ordinary people across the country to take financial service to every location possible. These agents, which some have fondly referred to as Human ATM’s actually do a lot more than your regular Automated Teller Machines.
Literally, a good number of services sought in a banking hall can be accessed from the Firstmonie agents; opening an account, making deposits, withdrawals, transfers and paying bills. It would perhaps, have been more appropriate to refer to them as ‘Mobile Human banks’. From a pilot scheme in 6 highly populated states, the Firstmonie agents have spread to all states in Nigeria, and 772 of the 774 local government areas.
In 2021 alone, over 63,000 agents were onboarded, with a total of over 150,000 Firstmonie agents across the country. As of December 9, 2021, the agents had carried out close to a billion transactions, valued at 17.51trillion since inception.
To ease entry into the scheme, FirstBank lowered the barriers of entry, so all that is required is for one to have an existing business, a visible and accessible business location, a valid means of identification, a Utility bill and the BVN. In this way, FirstBank empowered its agents to make money and expand their businesses, whilst playing a critical role in the national economy.
In November 2019, about 37 leading Agents received cash rewards from FirstBank for the commitment with which they had carried out their businesses. Thirty-one Agents won N250,000 each at the State level; Five agents won N1,000,000.00 each at the Regional level, and one agent won the grand prize of N2,500,000.00 at the National Level.
Firstmonie Agents have made banking services easily accessible so that people in the suburbs and remote environments no longer need to travel to access financial services. Even Nigerians in the developed areas can attest to how the Firstmonie agents have come through for them in critical times. A good example would be the Coronavirus pandemic lockdown where Nigerians were still able to access financial services through the agents.
The agent credit scheme launched in 2020 took this several steps forward by providing credit options to the Firstmonie agents so that they can have access to funds any day of the week, even before making cash lodgement at the branch.
“With our Firstmonie Agents in every neighbourhood, several communities have witnessed a surge in business and financial activities, which is contributory to national growth and development. We commend our Agents and are delighted to support them with credit facilities, which they can access 24hours a day in less than 2minutes,” said Chuma Ezirim, group executive, e-business & Retail Products, First Bank of Nigeria Limited.
Within a year of its Agent Credit scheme, FirstBank had economically empowered the agents with about N100 billion in credits to facilitate their businesses. If there was any doubt as to whether FirstBank deserved the “Best Retail Bank in Nigeria” award by the Asian Banker International Excellence in Retail Financial Services Awards for seven consecutive years, this is the point every doubt went up in flames.
In every way possible, the Firstmonie Agent scheme continues to work towards the Central Bank of Nigeria (CBN) target of reducing financial exclusion, tackling poverty, and helping ordinary Nigerians create wealth.