agent locations to help in reducing the incidence
processes at agent
locations to help i
webapex.net n reducing the incidence of inactive accounts as such agents
are closer to customers.
On its part, GTBank said
it actively engages inactive customers through incentivized campaigns to
encourage them reactivate their accounts. “Furthermore, the bank has also
commenced expanding its agent banking network so that customers in remote areas
can bank without the inhibition of proximity to our regular branches,” the bank
told Financial Vanguard.
CBN reacts
The CBN, however,
described the rise in inactive bank accounts as a normal feature of the banking
industr
westernmagazine.org y with profit potentials for banks.
Responding to Financial
Vanguard enquiries, Director Corporate Communications, CBN, Mr. Isaac Okoroafor,
said: “Incidence of abandoned accounts has always been a feature of the
Nigerian ban
ysin.org
king industry for many reasons.
“A common reason is the
cumbersome procedure of complete closure of an account. Many people in a hurry
will withdraw to the last kobo possible and move on, abandoning the account for
good.
“There’s is also death
and the absence or knowledge of a bona fide heir to the estate or poor
documentation for inheritance.
“In most cases,
abandoned accounts carry relatively low balances compared to active ones
signifying lack of interest to pursue them. The banks, however, welcome such
developments because the funds represent no-cost flow and eventual profits.
“The above are normal
trends in the banking system. However, if the is a recent upsurge in the
statistics then fear of law enforcement against money laundering cannot be
ruled out especially if the sums in the accounts are heavy.”
BCAN President, Oju
Ogubunka however insisted that the authorities should be worried and take
measures to tackle the trend.
He said: “The industry
should be worried about it. If the accounts are active, that helps monetary
policy performance, because velocity of money and other factors will come into
play. If people are not using their bank accounts and they are now dealing on
cash and carry basis, that is lost in the economy arrangement in terms of
capturing it in the system”.
By Babajide Komolafe for
Vanguard Newspaper
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