April 18, 2018 02.02PM / Diamond Bank Release
There was news in the media recently of the signing of a partnership agreement between MTN and ECOBANK to grow financial inclusion in Africa and bring banking services to the unbanked.
Since then, we have received enquiries on the future of our partnership with MTN, and Diamond Y’ello product. We wish to clarify that this partnership with MTN aimed at penetrating the unbanked population via Diamond Y’ello subsists and remains strong. It is however not exclusive to DB as the Nigerian banking industry regulator discourages this.
At Diamond Bank, we welcome any inter-industry collaboration that will promote financial inclusion and drive the transition from a cash-lite to digital payment system where we have unique advantages.
MTN – DIAMOND SYNERGY
The MTN-Diamond bank partnership offers our customers access to real bank accounts (Diamond Y’ello) that allows customers carry out transactions equal to a Tier 1 savings account opened in a banking hall which is different from the mobile money wallet operating structure widely available in East Africa and proposed for the rest of Africa.
The regulatory KYC requirement to facilitate the real bank account offered by the MTN-Diamond partnership is aided by the regulatory KYC requirement carried out at the point of acquiring an MTN Subscriber Identity Module (SIM) card.
Three critical differences between a mobile money account and a real account are;
Most transactions on a mobile money wallet undergo batch clearing and settlement daily but transactions on a real account are settled in real time.
A mobile money wallet is non-interest bearing but interests are charged on real account.
A mobile money wallet cannot receive deposits directly but a real account can.
A pilot is on the final stages on how to grant loans on Diamond Y’ello accounts to boost interest and fees.
NB: For additional information on Mobile money services guidelines in Nigeria, please visit www.cbn.gov.ng
Diamond bank is a leading financial institution, and its flagship digitally driven retail banking franchise has provided it with insights of customers’ lifestyle. These insights drive product and service developments and offering through multiple digital channels.
From Diamond bank’s perspective, we would prefer more banks to activate such deals with Telecommunication companies as it would promote financial inclusion, reduce unbanked and underbanked population and help the country transition from a cash-lite to cashless economy.
The statistic below shows the advancements recorded in customer acquisition and enrolment on the diamond Y’ello platform.