NCC calls for adequate education to attain financial inclusion

Prof. Umar Danbatta , the Executive Vice Chairman, Nigerian Communications Commission (NCC), on Friday called for adequate education to attain the required financial inclusion in the country.

Danbatta made the call at the Vanguard Conference in Lagos on Friday.

He was represented by the Deputy Director, Research and Development Department, NCC, Mr Okoh Aihe.

Financial inclusion is the availability and equality of opportunities to access financial services.

He said that the issue of low education and literacy was a big challenge across formal and financial sectors, “hence the rationale for high rate of exclusion within the youth and women in certain regions’’.

The NCC chieftain urged Fintech (Financial Technology) institutions to bridge the gap between gender, formality, age, urban and rural discrepancies.

“There is no gain saying that Fintech can improve access to finance for all types of consumers whether they are first time bank account owners or learning to save or transact digital business.

“However, there is need to address the challenge of financial literacy from the perspective of provision of new products and services that are designed for different cadres of literacy.

“Failure to tackle these challenges will continue to fuel resistance to the use of Fintech services by the existing excluded persons,’’ he said.

Danbatta noted that addressing contending issues arising from blockchain technologies (a technology that enables transaction without any trusted party) still grappled with technical hurdles and policy challenges.

“The blockchain operates independently of Central Bank and other financial institutions.

“However, the technology has challenges in the enforcement of laws in the absence of any intermediary and to whom to impute the legal liability for breaches caused by blockchain-based system,’’ he said.

Danbatta said that another challenge facing the Fintech, impeding the required financial inclusion in Nigeria also include Artificial Intelligence (AI) and big data analysis which is a driving force behind most Fintech disruption.

“Artificial Intelligence playfield is fraught with obstacles that keep the best of AI away from most small businesses, who are clueless about the technology to legacy systems that won’t support technology,’’ he said.

In his recommendation, Danbatta said that open market trade and investment regimes would create new avenues for rapidly upgrading technologies, skills and increase specialisation.

“There is need for immediate consideration of unbundling and restructuring of provision of financial services by relevant authorities.

“Well-functioning labour market can support the inevitable structural change.

“More broadly, sound macroeconomic policies help reduce uncertainty and create an enabling environment for the digital economy to grow,’’ he said.