By PROVIDENCE OBUH

Enhancing Financial Innovation & Access (EFInA) has urged Micro finance Banks (MfBs) in the country to develop innovative savings products to encourage the 25.5 million adults currently saving at home to save in a micro finance bank. In a survey report titled “The Landscape Of Financial Inclusion And Micro finance In Nigeria,”

EFInA cited irregular income; unemployment and proximity as the top three barriers for not having a MfB account. “With over 85 million adults without a micro finance bank account, finding new ways of reaching out to this market is a major challenge for micro finance banks .

New ways of thinking and innovation in product and service offerings are needed to attract the financially excluded population.

MfBs need to develop products/services that are uniquely tailored to meet the needs of the low income population and ensure that they fully understand the benefits of these products. “MfBs need to tailor loan products to suit the specific needs of consumers. Factors to consider when designing loan products include quick access, repayment period, low interest rates and flexible collateral requirements.

“MfBs should develop innovative savings products to encourage the 25.5 million adults currently saving at home to save in a microfinance bank,” EFInA said, adding that microfinance should be extended beyond branches by using technology such as mobile phones and POS devices. “Take micro finance services closer to the customer through agent banking by leveraging non-bank channels such as retail stores, restaurants, petrol stations,” EFInA said.