Agent banking: Backbone of Nigeria’s fintech boom – PalmPay MD

By Funmilola Gboteku

PalmPay has underscored the transformative potential of agent banking in revolutionising financial transactions, unlocking income streams, and stimulating economic growth in Nigeria.

The Managing Director of PalmPay Nigeria,   Mr Chika Nwosu said this in  an interview with the News Agency of Nigeria (NAN) on Thursday in Lagos.

He said that beyond boosting e-transactions, agent banking is creating income opportunities for Nigerians by navigating the economic downturn.

Quoting statistics, Nwosu said the recent report by the Nigeria Inter-Bank Settlement Systems (NIBBS) highlighted a significant surge in e-transactions valued at N1.07 quadrillion in 2024, reflecting the rapid expansion of digital banking across Nigeria.

The PalmPay boss explained that a key driver of the growth was the increasing reliance on agent banking solutions, which had played a pivotal role in accelerating financial inclusion.

“Agent banking has become the cornerstone of the fintech ecosystem, playing a crucial role in bridging the gap between traditional banking and underserved communities.

” In areas where access to formal financial services is limited, agent networks provide a human touch point, making digital transactions more accessible to individuals who may have been excluded from the financial rail, ” Nwosu said.

Highlighting its importance, Nwosu said the model had played a huge role in accelerating the adoption of digital banking within the informal sector, where cash remained dominant.

He said that as fintech adoption grew, agent banking  ensured  that millions of Nigerians,  including those without stable internet or bank accounts participated actively in the digital economy.

Speaking on how PalmPay had fared in the place, he said that Fintech had strategically expanded its agent footprint to over 700,000 agents across the 774 local government areas of  Nigeria.

“This network of agents ensures last mile delivery of financial services to every nook and cranny of the nation, ” he said.

Looking at the broader economic impact, Nwosu said the integration of agent banking solutions into Nigeria’s fintech landscape had far-reaching economic benefits.

Additionally, he said PalmPay’s extensive agent network had provided employment opportunities for thousands of Nigerians, contributing to economic growth and financial empowerment.

The PalmPay boss added that by bridging the gap between formal banking services and underserved populations, PalmPay is fostering a more inclusive financial ecosystem.

He noted that  the human impact was profound, as it provided job creation opportunities for young Nigerians striving to earn an income in the face of limited job vacancies.

Nwosu added that as Nigeria’s fintech landscape continued to evolve, PalmPay remained dedicated to advancing the fintech sector by expanding its agent network to even more remote regions.

“The surge in fintech transactions, as reported by NIBSS, is a testament to the growing influence of agent networks in Nigeria’s financial ecosystem.

“PalmPay, through its expansive agent network, is at the forefront of this transformation, ensuring that digital financial services remain accessible, efficient, and inclusive, ” he said. (NAN)