Banking The Unbanked -The Missing Puzzle In Our Banking System

Banking the unbanked is the bottle neck that will open up the retail banking space in the continent. Most of the major multinational banks have closely focused on development projects in the oil, gas and mineral sector and the syndication of government security offerings. This alone will not grow the banking space and the players in the market do not have the patience nor appetite to foster the growth of this sector as it relates to the retail business. Therefore, there has to be a shift in paradigm in bringing on board the unbanked and it starts with developing a solid microfinance sub sector that will feed mainstream banking with its clientele. The advances made in telephony services coupled with high penetration rates have made Africa rife for mobile money. This is another segment that can bring the unbanked to the formal banking channels. Public policy has been inadequate in creating the environment and framework for banks to attract the segment of society who lived in the fringes. The more government encourages electronic payment systems as an alternative for economic transaction, the better for the unbanked.  Bottom line is we have an inconsistent value proposition that is averse to the mobilization of deposits for the unbanked.  Finally the crowding out phenomena propelled by fiscal dominance of the exchequer has parked much needed deposit into government securities (Treasury Bills) thereby drying up available funds for seekers of financial capital. The sooner banks understand that their role is not to be trading houses (sellers of foreign exchange) but facilitators of financial intermediation particularly in the structuring of financial capital instruments, the sooner they will embark on a path to sustained economic prosperity. It is quite evident that the policy framework and environment need to adjust seamlessly with time. The dynamism and profile of the prospective client need to be streamline into policy formulation to cater for them. Dodou Nyang I guess next generation banking solution will rely heavily on electronic platforms and the idea of Branch Banking will slowly fade away in the medium term. This will help boost the margins of the banks as it reduce the bloated capital expenditure on their balance sheets. Doyen Abdoulie Touray what's your take on untapped business gold mine that needs prospecting and exploration?