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The Managing Director of Global Accelerex, Tunde Ogungbade has stated that the pandemic has awoken a new generation of consumers which he described as ‘Covid-19 Digital Converts’ (CDCs).
Speaking as one of the distinguished panellist at the maiden edition of the Regtech Africa Roundtable (RAR) – Dialogue Series with the theme: Money Re-imagined in Crisis: Did we just miss the opportunity to demonize cash?, Ogungbade proffered useful insights and practical strategies to accelerate growth and sustainability in digital payment adoption with a view to achieving a truly cashless society.
While highlighting the impact of the pandemic on digital adoption, he stressed that a new generation of Covid-19 Digital Converts (CDCs) have been born from the pandemic as the future face of consumers across different demographics.
“We have awoken a new generation of consumers and these are the people who are the last to turn the curve of adopting anything digital, not just in financial services but anything digital, and we need to get ready for them”, he said.
While describing the Agency Services Model in Nigeria as a critical enabler to the goal to attain 95% financial inclusion rate, Tunde stated that the spikes in transaction volumes experienced by some Agents is indicative of the opportunity for increased adoption of financial services by the underbanked and unbanked.
On channel adoption preference, Tunde stated that, “The thing that is primary in the minds of consumers is the perceived ease of usefulness and there are different risks that are involved in the payment process. So, a lot of time these perceived risks are what we have to address. And as we think about channels, the choice of those channels are used based on the perceived risks”.
On the impact of perceived risks on consumer behaviour, Ogungbade stated that, “There is a significant positive effect it has on the attitude of the ‘Covid Digital Converts’ towards adoption of any of these channels. Let’s not forget that the consumers have some expectations at the back of their mind. What we need to work towards is making those options ubiquitous, available, working all the time addressing the fundamentals: disputes, settlements and alternative options”.
He further stated that, “These channels, the ones that will win shouldn’t really be our main objective, rather the ones that will ensure that the inclusion objectives are achieved should be our paramount focus. As time goes on, those channels and instruments will change, but we will always be there to serve the needs of the consumers”.
While affirming that the various initiatives by the CBN over the last couple of years presents enormous opportunities for players in the financial inclusion – Agency services value chain, Mr. Ogungbade submitted that the key opportunities lie in unlocking the potentials in the aggregation and distribution of digital goods and services, insurance services, scaling Agent banking and Banking & payments.
The Regtech Africa Roundtable (RAR) provides a great platform for leading industry practitioners, tech innovators, serial entrepreneurs and regulators to share insights from an informed position on contemporary innovative regulatory issues to enhance effectiveness, innovation and growth.
© Regtech Africa 2020
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