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They are more ingrained in the local communities of Nigeria when it comes to telecommunications, and have agents scattered across numerous local governments in different states of the Federation. As a direct result of the already forged relationships in these parts, Telco financial service subsidiaries are likely to find it easier to engage the locals as Super-Agents or PSB’s, than the banks have.
This gives telcos a huge advantage in terms of penetrating the communities, and with several of them (including MTN or any of its subsidiaries) pushing to obtain a PSB licence, it is only a matter of time before the entire sector begins to consider expansion into financial services.
So until banking institutions find innovative ways to improve, simplify, and most importantly, on-board a great percentage of the grass root communities in the flow of their transactions, they may be facing a new kind of disruption.
