cumbersome procedure of complete closure of a

 

processes at agent locations to help in 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 th usatimes.cc em reactivate their accounts. “Furthermore, the bank has also commenced expanding its usanews.cc 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 news in inactive bank accounts as a normal feature of the banking industry 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 banking 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