Excerpts of Interview with Emem Usoro: UBA Investing Heavily in AI for Efficient Customer Service Delivery - Part II
In recent years, the banking sector in Nigeria, particularly in the northern region, has been focused on expanding its reach and improving financial inclusion. With the goal of becoming the bank of choice in northern Nigeria and ensuring a UBA account holder in every nuclear family, UBA Nigeria has set ambitious targets for itself. In this blog post, we will discuss the strategies employed by UBA to achieve these goals, the role of technology in driving financial inclusion, and the importance of strategic partnerships in reaching the unbanked population.
Expanding Reach through Digital Technology:
To address the low level of financial literacy in northern Nigeria, UBA has recognized the need to leverage digital technology to drive financial inclusion. The bank has deployed 610 agency banking partners in the north, who have reached over 1.5 million underbanked individuals. These agency banking partners utilize e-channels such as agency banking, PoS, and mobile money to provide banking services in rural areas. Additionally, UBA has strategically deployed over 200 offline BVN devices, which enable the opening of Tier 3 bank accounts for transactions. By utilizing existing branch networks, digital technology, and partnerships with fintechs, UBA aims to reach a larger portion of the unbanked and underbanked population in northern Nigeria.
Balancing Physical Branches with Technology:
While UBA recognizes the importance of technology in expanding its reach, it also acknowledges the role of physical branches in financial inclusion. The current branch network is considered optimal, but the bank remains open to opening more branches in strategic areas when the opportunity arises. This approach ensures that UBA can provide personalized and localized services to customers while also leveraging digital technology to reach those in remote areas. By striking a balance between physical branches and technology-driven channels, UBA aims to enhance financial inclusion and access to credit in northern Nigeria.
Strategic Partnerships for Financial Inclusion:
UBA has been at the forefront of forming strategic partnerships with various state governments, NGOs, and other organizations to boost financial inclusion. These partnerships have proven to be fruitful, with UBA leading in terms of supporting government initiatives and financing various projects. By collaborating with government agencies and NGOs, UBA aims to address the challenges of financial literacy and improve access to credit for the unbanked population. These partnerships enable UBA to leverage local knowledge, resources, and networks to reach a wider audience and make a meaningful impact on financial inclusion in northern Nigeria.
The Role of Financial Literacy:
Financial literacy is identified as the most effective solution for boosting financial inclusion levels in northern Nigeria. With a low literacy level and a significant unbanked population, UBA recognizes the need to prioritize financial education. The bank has taken significant steps to improve financial literacy through the deployment of offline BVN devices, training of agents on financial literacy, and increasing its presence and visibility in market locations. By empowering individuals with financial knowledge, UBA aims to bridge the gap and ensure that more people have access to banking services and are equipped to make informed financial decisions.
The Benefits of AI in Banking:
Artificial Intelligence (AI) has revolutionized the banking sector, transforming various aspects of operations and customer experiences. UBA has embraced AI through its chatbot, Leo, which has become a leading example of AI-powered virtual assistants in the banking industry. AI enables banks to handle data more efficiently, improve customer experiences, and streamline processes. It plays a significant role in customer service and support, fraud detection and prevention, risk assessment, credit scoring, data analytics, and process automation. By leveraging AI, UBA has enhanced its customer service, personalized banking services, and predictive analytics capabilities, contributing to the growth of the Nigerian economy.
UBA Nigeria's commitment to expanding financial inclusion in northern Nigeria is evident through its strategic goals, leveraging of technology, and partnerships with various stakeholders. By focusing on digital technology, enhancing financial literacy, and embracing AI, UBA aims to overcome the challenges of reach, literacy, and access to credit. Through these efforts, UBA is making significant strides towards becoming the bank of choice for the unbanked population in northern Nigeria, ultimately contributing to the growth of the Nigerian economy.
Read Up initial Part I below:
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