Digital Banking changing the fortunes of Nigeria’s Biggest Bank

The emergence of the Unstructured Supplementary Service Data (USSD) introduced to Nigerian banking customers first in 2015 to facilitate ease of transactions and enable quick service delivery is fast catching on as Digital banking services users are set to hit 3 billion globally, by the year 2021 says Juniper Research- A global data research company.

Afolabi Adesola looks into how this evolution is poised to shape the fortunes of Nigeria’s biggest bank-– First Bank Nigeria Limited, in terms of total deposits and gross earnings (FY2016)  through innovative financial services delivery for wealth creation and prosperity for Nigerians.

In line with a drive to remain competitive and deepen financial inclusion in the digital banking space,  First Bank launched the USSD *894# banking service in 2016, enabling customers to perform banking transactions without the use of smart phone or internet service. By the end of the year, the service recorded a total of 1 million active users, positioning the commercial banking group as one of the fastest growing banking product providers in the industry.

In 2016, the bank received the Digital Bank of distinction award from global finance magazine, reflecting a commitment to using a cutting edge to drive revenue in electronic banking.

The bank also sustained its leadership position as the first financial institution in Nigeria to achieve the milestone of 100 million electronic banking transactions per month.

From the financial perspective, revenue generated from electronic banking fees in 2016 alone stood at N21.8 billion.

This reflected a 42 percent increase from N15.4 billion recorded a year earlier. Electronic banking fees also made up 31 percent of the total fees and income of 71.4 billion realised by the bank in the 2016 financial year.

With over 12.4 million active customer accounts in over 12 countries, the bank has pledged its commitment towards increasing consumer convenience and meet the need of consumers who need to be closely connected and have control over their funds.

“We continue to invest in our people, processes and technology to enhance our unique financial services Group, offering relevant business solutions that meet the needs of our customers.” The financial holding group’s Chairman, Dr Oba Otudeko said recently.

As the banking business evolves, First Bank of Nigeria Limited has remained committed to empowering the Nigerian populace with the *894# Quick Banking service as part of its financial inclusion drive. The service is set to deliver the power to bank anywhere and at any time. It is quick, convenient and easy to use and beneficiary accounts are credited instantly with alert notifications. Built on the innovative USSD technology, the *894# quick banking service transmits information through GSM network channels via mobile phones.

USSD technology facilitates sessions of communication that can be used in various areas of life including banking. The *894# USSD service makes banking services available across all GSM networks, on any type of handset or device; iPhone, Android, Blackberry and even simple feature phone famously referred to in Nigerian lingo as ‘kpalasa’. It requires no internet service connection and can be used in remote locations across Nigeria. This USSD service is delivered on the customers’ registered phone numbers linked to their FirstBank accounts.

With 894#, the mobile phone has become a mobile branch and FirstBank customers can activate this service in three steps: dial *8940#;  enter a four-digit Personal Identification Number (PIN) linked to the debit card; create a five digit PIN, and the registration is complete. Customers can transfer money to FirstBank and other banks in Nigeria; buy airtime for themselves and their loved ones; check account balance on their phones, and do lots more wherever they are. PIN reset on this service requires only a quick dial of 8940#.

Banking transactions can now be performed on the go irrespective of location or time as there is no worry of internet connectivity or a token device, but only a Personal Identification Number (PIN). To send money, simply dial 894AmountAccount Number#; select beneficiary bank; confirm the amount, beneficiary name and enter five-digit PIN; then select account to debit. For airtime recharge: simply dial *894Amount# to recharge for self; to recharge for others, dial 894AmountPhone Number# and enter five-digit PIN. FirstBank customers can transfer up to N100,000.00 per day and recharge airtime up to N10,000.00 per day. To generate account mini statement, dial *894Account Number#, and to check account balance, the magic code is 89400#.

FirstBank has always been at the forefront of seamless banking transaction in a convenient and secure manner and is committed to ensuring its customers are fully served with the USSD service.

Commenting on the service Segun Oye, a statistician and one of first Bank’s Shareholders stated that the initiative is innovative and should be commended.

He said, “The 894 service is easy and convenient to users, it saves me time and energy to do other activities. With this figures, it is obvious the bank is generating significant revenue for investors as well, which makes it a win-win situation”

First Bank has also confirmed, it will soon launch on the *894# Quick Banking service bouquet, the utility bill payment, payment for goods and services at any retail store in Nigeria, opening of savings account and linking customer BVN to the new accounts.

Statistics show that consumers are increasingly opting for banking services that offer, convenience, multi-channel digital services, speed and innovation all of which First Bank is passionate about driving rigorously.