February 19, 2025
How MoneyPoint wants to conquer the retail banking market

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MoneyPoint, one of Nigeria’s largest commercial banks, is looking to replicate its success in agency banking in retail by leveraging its distribution strategy.

On August 17, 2023, TechCable exclusively reported that Nigerian fintech, MoneyPoint, has expanded into retail banking. The 8-year-old startup, which provides banking services to small and medium-sized businesses across Nigeria, is hoping to reach new customers by expanding its services into the personal banking sector.

At a recent media briefing in Lagos, Babatunde Olofin, the Acting Managing Director of Moneypoint Microfinance Bank (MFB), revealed that the holding company, Moneypoint Inc. now processes payment transactions worth $12 billion with an average of 400 million transactions monthly . That’s an interesting number when you consider that MoneyPoint said it processed 1.7 billion transactions in 2022 worth more than $100 billion. According to Olofin, MoneyPoint, formerly called TeamApt, has an “elastic infrastructure” that allows it to process large volumes of transactions.

MoneyPoint’s latest bet on retail banking means it will compete in an area dominated by big banks and well-funded fintechs, including upstarts Opay and Pompe, and companies like Cuda, FairMoney and Carbon, which have established a significant presence in the personal banking sector. has been created. For example, Opay claims it has 35 million registered users, while PalmPay says it has over 25 million users. MoneyPoint is positioning itself to further accelerate electronic transactions. Industry data shows that Nigerian digital payments are set to have their best year ever in the first five months of 2023 with an average monthly volume of 818 million. TechCable Insights estimates that real-time payments could reach 9.7 billion transactions by the end of the year, almost double that figure. From 2022 onwards.

For MoneyPoint, delivery is everything

MoneyPoint is looking to replicate its success in agency banking in the consumer banking space. It is betting that its distribution strategy with a network of offline agents will attract customers. “We have representatives known as agents in every corner of the country,” Olofin said. “Even in areas where we do not have a physical bank presence, we are there. We call our agents the ‘Man Bank’ because you can virtually do everything you can do in the banking halls with our agents.

With over 1.6 million businesses and over 10,000 agents across the country, the fintech hopes to leverage its solid agent network to target retail customers. MoneyPoint expects to on-board at least 4.8 million retail customers over the next three months. It’s basically betting that it can pull in three new retail banking users from each of its business customers.

Olofin shared that to include people without smartphones, MoneyPoint’s agents will help them open a personal account, and issue them cards that can be used to make transactions. “With the spread of our agent network, it has become easier for them to [customers] Contacting agents and transacting without looking for a physical structure,” he said.

Facilitation for Financial Inclusion

MoneyPoint’s personal banking service represents an interesting endeavor for the engineering-first company. The company is relying on gamification to stand out in the competitive market. Ope Adeyemi, the company’s senior vice president of channels and sales tools, said thousands of users can win N2,000 weekly and a grand prize of N10 million on completing certain tasks and milestones.

“Customers are rewarded with coins after transacting on our personal banking app, and these coins allow them to participate in exciting weekly games like Shuffle, Spin the Wheel, and more,” he added. MoneyPoint is betting that gamification will not only enhance the user experience but also encourage customers to use the app and its associated debit card for transacting over cash.

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Source: techcabal.com

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