Consumer Awareness and Financial Enlightenment Initiative (abbreviated as CAFEi), suggests the use of blockchain to fix the identity management issue in Nigeria.
Recent reports from CAFEi equally encourges financial institutions to provide services and products such as micro-insurance, micro-credit, among others.
As per the communiqué shared with THISDAY by CAFEi), they have recommended that for financial inclusion to be achieved in Nigeria, people must be economically included and have access to decent jobs and decent pay.
The communique also suggests that people should be able to access basic payment system, insurance and credit.
Other financial products should be made available to enable them improve their quality of life and grow their wealth.
According to the communiqué, “Expanding branches in the rural areas is therefore not the answer rather a tailored and affordable solution is required to meet the needs and wants of rural customers.
“The influence of technology is primary to improving financial inclusion, and such solutions may include deploying agent banking, USSD, and others.”
The communique confirms that financial inclusion has remained very low (below 10%) in terms of access to insurance and credit.
Moreso, the use of such products like credit depends on people’s level of economic participation and awareness.
CAFEi pointed out that the major barrier to financial inclusion is inadequate knowledge about available resources and the inability of existing financial products to cater for the people’s needs.
Going further, the group suggests that the financial sector needs to channel majority of the resources spent on infrastructure to financial education and awareness to reduce the financial inclusion gaps.
“Fintechs have an opportunity to contribute to improving financial products and services due to their light footprint and innovation. They have however tended to focus on the payment subsector, acting more like pay techs rather than Fintechs.
“Untapped opportunities exist in the area of blockchain which may be leveraged to fix the chronic issue of identity management,” it added.