THE increase in the use of   mobile phones by people living in rural areas and those operating small businesses is facilitating easier access to financial services, said Chief Executive Officer, Sterling Bank Plc, Mr. Suleiman Abubakar.

Speaking at a breakfast roundtable organised by the Financial Services Group of the Lagos Chamber of Commerce and Industry, LCCI, on deepening financial inclusion through data analytics and financial technology in Lagos, Abubakar who was represented by the Chief Information Technology Officer, Sterling Bank, Mr. Olayinka Oni said: “Global spread of mobile phones and cellular networks are facilitating easier access to financial services in hard-to-reach populations and small businesses at low cost and risk in developing countries.

“Fintechs hold tremendous potential, challenging old business models with greater speed, accountability and efficiency at a cheaper cost.”

He said access to financial products and services is becoming more attainable than ever for consumers that live in rural locations or regions without the equipment and infrastructure of a modern economy due to the prevalence of mobile phones and cellular networks.

He noted that financial institutions and Fintechs could objectively use data analytics to extend credit to consumers who previously had to contend with sometimes exploitative informal credit because they had no formal credit history.

He remarked that it is essential for a country to have strong political commitment and coordination across relevant stakeholder groups in both the public and private sectors of the economy to achieve financial inclusion. “In addition, the country must put in place wide-reaching policies that promote responsible financial access, financial capability, innovative products and delivery mechanisms,” he said.