As progress continues in enhancing financial inclusion for unbanked and underbanked communities in Nigeria, the Shared Agent Network Expansion Facilities Limited (SANEF) has identified Artificial Intelligence (AI) as the next crucial step in advancing financial services across the country.
Speaking at the recent Payments Forum Nigeria (PAFON 2.0), Uche Uzoebo, MD/CEO of SANEF Limited, emphasized the importance of keeping financial inclusion central to national progress as technology evolves within the financial ecosystem. In her remarks, she highlighted that agent banking has been transformative in expanding financial services throughout Nigeria.
“By deploying agents in underserved areas, we have brought financial services and banking products such as account opening, cash-in, cash-out, bill payments, and transfers closer to the unbanked and underserved,” she said. The Agent Banking model has effectively bridged critical gaps, minimizing the need for long queues at physical bank branches and allowing individuals in rural areas to access banking services without having to travel long distances. Agents often communicate in local languages, making transactions easier for individuals with limited literacy and reducing reliance on complex documentation, which is vital for financial inclusion.
Uzoebo noted that AI represents a significant opportunity to align with global trends in advancing financial inclusion. “Artificial Intelligence is transforming the financial services industry at an unprecedented pace, reshaping how businesses engage with customers, manage risks, and promote financial inclusion,” she explained. “It is now an essential component driving the modernization of financial products and services, actively improving mobile banking apps, automating customer service, detecting fraud, and enabling instant lending decisions.”
In Nigeria, where millions remain unbanked and underbanked, AI offers a transformative opportunity to bridge financial gaps, enhance accessibility, and improve the overall efficiency of the financial ecosystem. Uzoebo outlined several benefits of applying AI within the financial system:
- Minimizing KYC Roadblocks
- Real-time Fraud Detection: Enhancing trust in digital payments and solutions.
- Personalizing Financial Products: Tailoring services to meet customers’ specific needs.
While discussing AI's advantages, Uzoebo stressed the need for stakeholders to ensure that AI systems uphold individual privacy, maintain equitable standards, remain transparent, and foster trust. She cautioned that incorporating AI into payment solutions and the broader financial inclusion sector must comply with existing regulatory frameworks, including the Central Bank of Nigeria’s (CBN) Consumer Protection Framework, the Nigeria Data Protection Act (NDPA), and the National Information Technology Development Agency’s Data Protection Regulation (NDPR).
SANEF, established in 2019, aims to deepen financial inclusion through partnerships and collaborations and serves as an initiative of the Central Bank of Nigeria. Supported by Deposit Money Banks (DMBs), Nigeria Inter-Bank Settlement Systems (NIBSS), and licensed super-agents, SANEF acts as an enabler in the financial inclusion ecosystem, working with various stakeholders to expand financial inclusion through agent expansion, financial literacy, public enlightenment, policy advocacy, and technological solutions to enhance agent business viability and network sustainability.
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