CBN advises banks to cut service cost

27 Nov CBN advises banks to cut service cost

The Central Bank of Nigeria (CBN) has advised banks and other financial institutions to reduce the cost of providing banking services to their customers, especially the underbanked and unbanked within the society.

Describing the cost of providing banking services to customers as ‘too high,’ CBN Director, Payment System Management Department, Musa Jimoh gave the advice at the Hope Payment Service Bank opening in Lagos.

Jimoh said  the apex bank will be monitoring the new entrants into the banking sector- Payment Service Banks- and assess the rate at which they offer their services to customers after six months of operation.

The Payment Services Banks (PSBs) were approved by the CBN to enhance access to financial services for low income earners and unbanked segments of the market at the grassroots through digital services.

The new entrants into the banking sector are – Hope PSB, a subsidiary of Unified Payment, Globacom’s Money Master and 9Mobile’s 9PSB.

Jimoh said that affordability of banking services is very key, and that banks should think of ways to reduce their cost to serve.