Nokia enters into banking

Mobile phone manufacturing giants, Nokia, has declared its intention to enter into the banking industry.The scheme was necessitated as a result of the high level of unbanked people in emerging economies.

Dubbed “Nokia Money Solutions”, company officials say the initiative would seek to bridge the gap between the banked and unbanked in developing countries.

The project, according to officials of the company, would begin in 2010 in the Middle East and African (MEA) markets, which have a record high of unbanked people. Making the declaration in Cairo, Egypt, Alex Lambeek, Vice President, Nokia, said his outfit would build a number of money agencies in emerging markets, to address the problem.

As to the number of agencies to be built, it is not known, but Mr. Lambeek said Nokia would liaise with some telecommunication providers in the region, where these money agencies would be established, to serve the people.

“Already, there are over 4 billion people who have a bank account, but there are over 4 billion people in the world who also do not have a bank account.

The establishment of Nokia Money Centre throughout the entire region will seek to address this challenge,” noted Lambeek.

The Ghanaian market is not different from what Nokia is seeking to address, as there is a high percentage of unbanked people in the country. Out of a population of about 23 million, only 2.2 million people have bank accounts.

It is therefore estimated that 80% of the Ghanaian population is said to be either unbanked or under-banked and have no access to financial services. With this high percentage, players in the financial industry are strategising to address the variance.

The Daily Graphic newspaper, in October, reported an initiative being embarked upon by the Fidelity Bank to partner Ghana Post, which has offices across the country, to offer financial services to the unbanked and under-banked in the country.

Known as “Post Bank”, the concept would see Fidelity Bank rolling out 75 offices in Ghana Post premises, to provide financial services to the people. Commanding a 70% market share in the MEA, Nokia is strategising with its high expertise to provide similar financial services to help improve living standards in the MEA.

It is therefore envisaged the idea introduced by Nokia would help reduce the rate to an appreciable level.