Lack of awareness hinder digital financial services growth
LOW customer awareness of new and exi sting digital financial proGXcts has affecteG the growth of the sector in Zambia, United Nations Development Programme 81'3 Gigital finance services exp ert, Junior Kwebiiha has noted.
Mr Kwebiiha said this is reflected in the high levels of inactivity among registered customers.
+e challenged digital financial service (DFS) providers to develop viable business models as well as engage in partnerships to expand the services especially in the rural areas.
Mr Kwebiiha was speaking in an interview with the Daily
Nation in Lusaka.
He noted that most of the complaints from stakeholders was lack of cost effectiveness to meet the needs of the lowincome brackets.
“There has been a low update of digital financial services in Zambia especially in rural areas. Most DFS providers reported challenges in the development of cost effective agent management structures in both urban and rural areas including challenges in managing, monitoring and providing liquidity to agents,” he said.
Mr Kwebiiha said DFS providers should develop and communicate a clear proposition for wallet users to build more accessible networks to reach rural areas.
He noted that product offerings should be bundled to increase uptake of digital solutions and eventually digital financial services.
Providers, he said, should review incentives for agent network managers to move from acquisition to focusing on usage or liquidity management and leveraging data for agent monitoring.
He said DFS providers need to critically look at the agent selection process and ensure that the agents employed are knowledgeable and have a business mind.
“Banks should consider partnering with third party providers as super agents to address existing liquidity challenges.
“There is an opportunity for providers to partner and create new business opportunities that will help in the development of new products and improve their usage to customers, “he said.