Lorna Izoma
I will never forgive retail banks for using my ₦3000 to practice magic tricks, because it vanished into thin air.
In the year 2016, ₦3000 was a lot of money because, in there was meat, soup, stew, rice and garri – for student consumption obviously.
You guys would have loved life back then, ₦10,000 a month would last so well.
I also recall dancing the devil’s tango with another retail bank, it was a back and forth which lasted for 2 weeks before the money appeared.
Or was it when ₦2000 was sent to me by my cousin, but it hung in the air and never dropped?
If Nigerians begin to recount instances where retail banks screwed them over, we would be here till Christmas.
But then, hearing our wails and woes, a savior appeared *cue angels singing* in the form of microfinance banks.
There had been various microfinance banks, all focused on providing financial services which worked towards the needs of individuals and small businesses.
But a big number of them failed.
Why?
I did say their main aim was to provide financial aid, right?
Well, several of them provided a lot of loans for quite a number of people and businesses.
And we can all guess what happened.
The issue was, some microfinance banks (for some reason) trusted that people would pay back their loans, complete and on schedule.
Lol.
Whoever their financial advisor was, did not advise them well.
This risky endeavor put most of the microfinance banks out of business.
But I guess that was the old generation of microfinance banks.
New microfinance banks, however, have found a way to make our money work for them.
Whatever Jack Ma motivational speech they listened to, they should please share the update with us.
Because how did they even come up with that? It makes perfect sense.
Our money works for them, so they make money through us.
And to keep us from leaving their apps, they give ‘cashback’ to us.
A little incentive to keep us loyal to them. Brilliant!
Obviously, at first, there were few bumps on the road.
I mean, it was new and unchartered territory, with almost no history of user experience.
They were basically Indiana Jones.
But also, like Uncle Jones, they slashed with their machete of tenacity, powered by Millennial anger and Gen Z audacity.
This brought forth the birth of the microfinance bank apps we know and love today.
Now, what are the benefits of microfinance banks?
A personal advantage to me is that my money will not play hang man with me.
There are no more high service charges, no more high transaction fees.
And no more of our money performing magic tricks on us.
Although, I doubt microfinance banks can ever kick retail banks out of business because, most people are still very skeptical about microfinance banks.
Like my auntie will say, "if anything happens, I know where to find Second Bank, I will just go there and shout. But I don't like these banks without offices."
Makes perfect sense, she needs to feel her money is secure.
But, if you're like me who cannot shout, let's stay with our bank apps and online customer care.
Also, retail banks provide personalized services and access to advice from professionals, which helps to navigate finances more effectively.
Microfinance banks do not provide that, but at least if a bank transaction is failed, I get my refund within 24-48 hours.
Lastly, to add, nothing is perfect.
Even with the microfinance banks being so efficient, it still has its bad days.
But I still prefer them to retail banks.
I don’t need my money playing Houdini with me.
Drop a comment on which of the banks you prefer. Retail or microfinance banks?