In other to help bring the low-income groups into the formal financial services sectors through regular savings, Stanbic IBTC Bank has introduced an informal savings scheme called Contract Save.
The scheme which is similar to the local Esusu or Ajo common among market women and artisans is a hybrid investment account that enables customers to save in a regular and disciplined way for specific goals and events.
Contract Save account holders, the bank said, stand to benefit in several ways, including monthly credit interest and bonus payments, with the possibility of the bonus rising as high as 100% of the credit interest earned over the tenor of the account.
The product, structured like a fixed deposit account, has tenure ranging from six to 24 months with a minimum opening balance and minimum monthly payments of N5, 000, respectively, required.
According to the bank, Contract Save was introduced not only to encourage savings but also to help bring the low-income groups into the formal financial services sector. The bank said the product is targeted at current and savings account holders such as individuals and SME operators, High Yield Current Account (HYCA) holders, salary account holders as well as housewives who receive regular monthly stipends, traders, artisans, students, and others.
Executive Director, Personal and Business Banking, Stanbic IBTC Bank, Mr. Babatunde Macaulay, said the product was introduced to ensure customers achieve their savings and investment objectives in a disciplined and profitable way.
Explaining further, Macaulay said in line with the retail banking drive of the Group and the financial inclusion policy of the Central Bank of Nigeria, the bank will continue to explore ways to develop financial solutions that are relevant to the financial and economic aspirations of Nigerians.
“Contract Save is a product we developed to help customers achieve their savings and investment objectives in a disciplined and profitable way. The product is in line with the financial inclusion policy of the Central Bank of Nigeria and our retail banking drive,” Macaulay said. “The bank will continue to tap into the rich resources of the Stanbic IBTC Group to explore innovative ways to develop products and services that are relevant to the economic aspirations of Nigerians,” he added.
Macaulay reiterated the Group’s resolve to ensure Nigerians, particularly the informal sector, embrace a rich, rewarding and safe banking culture through the introduction of relevant products and services like Contract Save that speak to their everyday needs.