Digital Content

SMS Banking may not be making the headlines but it is certainly growing and fast too as one of Nigeria’s pioneer of Internet banking First Atlantic Bank has found out.

The bank now has about 270, 000 SMS bank account holders since it first launched the service four years ago.

Its flagship SMS banking service ‘Flash me cash’ has grown in popularity though there is still plenty of room to get more people using it from the over 10 million mobile phone subscribers said Group Head of Technology Deji Oguntonade and Head of Electronic Product Marketing Group (EPMG) Ure Okezie.

Besides the 270, 000 SMS bank account owners, only 10% or 27, 000 are considered active. But the volume of transaction is on the double positive side. SMS banking transaction averages about N600 million a month, which highlights the level of confidence those who click on their phones to do banking transactions have in their platform.

When First Atlantic first introduced SMS banking, less than 40 phone users were willing to use their phones to make financial transactions on any day. Over time, the acceptance level rose to a record 300 per day. Last year, it increased to 1000 users per day and this year, an average of 3000 people click their mobile phones to do banking business according to Oguntoinade and Okezie.

“We have seen a huge transaction in value and volume of what we have done and people are more comfortable with the product. We now have ‘Flash me cash’ club like a marketing network that helps spread out the news on the merits of the product,” said Oguntonade.

First Atlantic Bank, which is teaming up with other banks to form the new Astra Bank under the Central Bank of Nigeria's regulation that banks increase that liquidity base to N25 billion (about $250), said its Internet banking has offered more exciting results.