FBN records N3trn transactions through 50,000 mobile agents

The Group Managing Director (GMD) First Bank of Nigeria (FBN) Holdings, UK Eke has said the group recorded N3 trillion worth of transactions via alternative channels deployed, through mobile agents across the country.

He explained that transactions through other alternative channels saw a significant increase of 85 per cent from the total transactions.

The FBN Holdings boss, also, acknowledged that the financial institution was able to grow in leaps and bounds of mobile agents by deploying over 50,000 agents positioned across 772 local governments in Nigeria.

Speaking on the financial performance of the group, Eke pointed out that technology is one of the key enablers and drivers of the company’s business and performance.

According to him, as a financial institution, we decided to lead the market in innovation and drive down costs by leveraging technology in our revamped processes.

“Similarly, we also sought to extend our leadership in alternative channels, consistent with our strategy of enhancing and diversifying the income stream of the Group with increasing revenue from non-interest income. On these fronts, we have made significant progress and the financial results of 2019 have supported this position.

“These changes have been driven by both internal considerations and accelerated by the changing external environment. We have seen a significant shift in global trends, driven by the changing needs of customers who have indicated preferences for non-physical channels. These changes had continued to reflect in our changing revenue portfolio through increasing number and value of transactions via alternative platforms which are outweighing branch visits on a ratio of 85:15.”

He noted that despite the COVID-19 pandemic, FBN Holdings Plc reported a Profit After Tax (PAT) of N49.5 billion for the half-year period ended June 30th, 2020.

“The results for the period ended June 30, 2020, have underpinned the strong fundamentals of the business and a demonstration of the resilience of the Group. Globally, the pandemic has successfully separated businesses into two main buckets – businesses positioned for the future and those that need to reinvent to remain relevant in the future.

“Our investment in alternative channels, layered on the extensive reach of our footprints, has ensured that the Group is positioned for the changing needs of our customers both during the pandemic and in readiness to enjoys the windfall from customers’ preferences for e-channels and other alternative platforms as a result of the COVID-19 pandemic.

“Consequently, we have seen a fundamental shift in our revenue model with income from alternative channels accounting for a growing share of our portfolio. This development is not by accident as we have seen over the last half a decade, a growing migration of our customers to alternative channels which now accounts for 75per cent of transaction volume.