Loma Bank Launches GoCard for Unbanked Nigerians

In a nation where more than 38 million adults still do not have access to publicly known financial services, a little-known online bank may have managed to close the gap without the need for a smartphone, internet connection, or even an app.

The GoCard, a physical payment card made for those without bank accounts or who need a card as quickly as cash from a point-of-sale agent, was introduced by Loma Bank, a fintech company that is developing offline banking infrastructure.

The GoCard is available for purchase at any participating POS terminal, just like Lagos’s Cowry transport card. Following purchase, customers only need to scratch the card to uncover the unique bank account number associated with it. After that, they can use the card to make payments anywhere by loading funds onto it via transfers or cash deposits made by POS agents.

However, the GoCard is made to work like a standard debit card without the typical banking experience, in contrast to other prepaid cards that are sometimes restricted to certain use cases or require online activation.

According to Ayomide Olupitan, COO of Loma Bank, “we think that people should be able to go there and get a working payment card, just as they go to POS agents to withdraw cash.”

With Nigeria’s long walk-path towards financial inclusion taking a new turn with Nigeria making great strides toward reducing the disparity in financial access. Less than thirty percent of adults have access to formal financial services in 2008. According to EFInA (Enhancing Financial Innovation & Access), that percentage increased to 64% by 2020, but advancements have stalled. Tens of millions of Nigerians still live in a cash economy as of 2023, and just 57 million have bank accounts.

Mobile money, agency banking, and smartphone apps have been at the forefront of the discussion about banking the unbanked for years. However, people without smartphones, digital literacy, or internet access are frequently left out of these solutions.

A radical alternative is provided by Loma Bank’s GoCard, which gives users a real, and offline-friendly instrument that connects to Nigeria’s digital banking system.

According to Loma Bank CIO Samuel Ojerinde, “The Loma Bank GoCard serves both individuals inside and outside the digital financial ecosystem simultaneously.”

In order to comply with regulatory and security standards, the GoCard is secured with the best KYC criteria and a transaction limit. Olupitan affirms that although it is presently intended for in-person payments, internet transactions will soon be possible.

With an opportunity to achieve true financial independence, the GoCard has a wide range of applications. It can be used by employers to provide employees with errand spending cards with a limit. Aid can be distributed by NGOs without requiring people to be fully enrolled in banks. Additionally, it provides a means for people to receive digital transfers from employers, family, or agencies without requiring a traditional bank account or smartphone.

Loma Bank is planning a broader launch in the upcoming months after starting a soft rollout of the GoCard through a restricted group of POS agents. It will usher in a new era of financial inclusion in Nigeria.

People in the underdeveloped areas can adjust to this, so it’s a good introduction.