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The path to digital financial inclusion in Nigeria: Experiences of Firstmonie

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  • David-West, Olayinka

Abstract

In emerging markets like Nigeria, the number of adults excluded from formal financial systems has developed an informal system excluded from formal reporting structures that aid economic development and policy formulation. Documentation requirements, costs, access to financial services and literacy are contributing factors to the high adoption of informal systems. Unlike banking, mobile telephony access and adoption has revolutionised traditional perspectives of financial access and inclusion. This has warranted regulatory changes and the introduction of a new cadre of financial service providers: mobile money operators (MMOs). The policy changes that resulted in MMO licensing has produced over 20 operators and the opportunity of offering financial services to the larger unbanked community. This paper explores Nigeria’s path to digital financial inclusion (DFI) with experiences drawn from Firstmonie, the mobile money initiative of one of Nigeria’s oldest institutions, First Bank. Derived from public sources and interviews, we present the operating model of Firstmonie using the business model canvas (BMC) and subsequently draw insights on Nigeria’s path to DFI. While Nigeria’s mobile money adoption and performance has fallen short of expectations, the first hand experiences catalogue operator issues and challenges provides understanding of the contextual constraints of mobile money operations in Africa’s largest economy.

Suggested Citation

  • David-West, Olayinka, 2016. "The path to digital financial inclusion in Nigeria: Experiences of Firstmonie," Journal of Payments Strategy & Systems, Henry Stewart Publications, vol. 9(4), pages 256-273, January.
    • Handle: RePEc:aza:jpss00:y:2016:v:9:i:4:p:256-273
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    Citations

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    Cited by:

    1. Evans, Olaniyi, 2022. "Social and institutional determinants of digital financial inclusion in Africa: A system GMM Approach," MPRA Paper 117006, University Library of Munich, Germany.
    2. Ozili, Peterson K, 2024. "Comparative analysis of financial inclusion in Nigeria, sub-Saharan Africa and the World," MPRA Paper 121527, University Library of Munich, Germany.
    3. Bindu K. Nambiar & Kartikeya Bolar, 2023. "Factors influencing customer preference of cardless technology over the card for cash withdrawals: an extended technology acceptance model," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(1), pages 58-73, March.

    More about this item

    Keywords

    mobile money; MMO; First Bank; digital financial services; business model canvas;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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