NUBAN: Did Sanusi Have Bank Account Number Portability in Mind?


 

Why do many Africans carry several mobile phones? The leading cause of this attrition is poor quality of service by the mobile network operators. The same goes for banking services. Nearly 60% of customers hold multiple banking relationships. This has made loyalty in the two industries a rare commodity. However, in telecom industry, this could change as several countries such as Kenya, South Africa, Ghana and Nigeria are implementing number portability system.

Number portability would empower phone subscribers to change to other network seamlessly from one operator to another, and thereby save them the hassle of buying a new SIM pack. However, my focus is not on the desirability or otherwise of portability system in telecoms. It has been proven without doubt that the system works. My concern is whether this system could be adopted by the banking industry.

Like in the telecom sector, the leading cause of this attrition in banking is poor customer service. What really determine the choice of a bank for a customer goes beyond loyalty to a brand. With the market now flooded with similar products, or what my friends called bankwagon, the choice of whom to bank with boils down to service, quality of experience, and to some extent, personal circumstances such as geographic location or a company-mandated salary account.

Other reason customers have more than one account is that often; it is both cumbersome and expensive to close the old one, especially if it involves terminating a bundled product. But can the introduction of Bank Account Number Portability in the banking system change this? Bank Account Number Portability will enable customers move their bank accounts seamlessly from one bank to another, and thereby save them the hassle of closing and opening accounts, reissuing standing instructions and so on.

For account portability to work, two major variables would need to be established. One, the banks must adopt a standardized practice of account numbering, indicating the bank and code number of the branch owning the account. Two, a centralized database containing the details of all bank accounts of the member banks, which serves as the repository of all porting information would need to be established.

I wonder if Sanusi Lamido Sanusi, Governor of Central Bank of Nigeria (CBN) had account number portability in mind when the regulatory bank implemented Nigerian Uniform Bank Account Number standard (NUBAN) for the banks in the country. With effect from May 16, 2011, all 13-digit account number was replaced with a new 10-digitaccount number.

The 10-digit NUBAN makes Nigeria fully compliant with the 10-digit account number structure required by the West Africa Monetary Institute (WAMI) towards the economic integration of ECOWAS countries. Whatever Sanusi had in mind about NUBAN, the first step towards bank account portability had been taken in Nigeria. Who will take the next step? When?.