By Luminous Jannamike and Folarin Kehinde

ABUJA — Millions of Nigerians remain outside the formal financial system despite the rapid spread of banking services across the country, business and financial sector executives said in Abuja yesterday.

The concern emerged during the signing of a Memorandum of Understanding, MoU, for a new flexible workspace initiative targeting entrepreneurs, start-ups and small businesses, reflecting a growing effort by financial institutions and workspace providers to combine office facilities with banking and business support services.

Speaking during the ceremony in Abuja, Country Manager of International Workspace Group, IWG, in Nigeria, Ayo Akinmade, said the partnership with Alternative Bank had already produced projects in Lagos and Owerri, with plans to expand to Jos and Maiduguri.

According to him, the collaboration was built around establishing flexible workspaces close to existing bank branches as part of efforts to support entrepreneurs and professionals seeking lower-cost office options.

He said: “Our strategic partnership with them is that we partner with them in locations where they already have their branches, and we provide offices around their branches.

“The objective is twofold. One is to create offices that customers can use, but the second is that those customers then become natural customers for the bank.”

Akinmade said the company intended to maintain a long-term presence in locations where it operates.

“The plan is when we set up this place, we are going to be here for at least 10 years. Any location that we are in, we are thinking of a minimum of 10 years staying in that location,” the IWG country manager said.

He added that the flexible workspace model was designed to reduce long-term rental commitments for businesses and professionals facing rising operating costs and changing work patterns.

Also speaking, Strategy Officer at Alternative Bank, Olatoyosi Kola-Idowu, said: “You find a lot of financial services everywhere, but at the same time, a lot of people are not being reached.”

Kola-Idowu said partnerships had become increasingly important in a crowded financial services market where many Nigerians still lacked access to services suited to their needs.

She said: “The only way that you can access people the way that they want to be reached is partnerships. At the end of the day, you realize that the market is saturated.

“The essence of this is to communicate to our customers in a non-conventional way to say that we’re ready to help you. We hear you. We see what you need and we’re ready to meet you at the point of that need.”

According to her, the collaboration would also focus on financial literacy, digital services and support for emerging businesses.