Bank CEOs Memo on USSD Billing for Banking Services
It seems the banks are not evidently honest by claiming they did not align with MTN on the USSD new charges. Here is a letter written by the banks in an internal memo seen by the Cable. Note this section - “We are proposing an orderly implementation end-user billing for bank customers, aligning with the standard practice for USSD billing. Customers using non-bank services already pay for USSD sessions.”.
THE BANK CEOS’ LETTER IN FULL
Re: Anti-competitive practices on Reverse Corporate Billing for Bank USSD Services
We write with reference to instructions to our USSD aggregators, demanding Banks to subscribe to corporate-level billing for USSD services.
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The demand forces us to a level where we will pay N4.5 per USSD session of 20 seconds, amounting for (to) around 450% increase in tariff. Many transactions extend to two or three sessions. This is a cost that will destroy the financial inclusion strides made by banks where we have included almost 20m more citizens in the financial system by building services that run on USSD. Our partnership spirit and recognition of USSD as a critical national asset to drive financial inclusion has served all stakeholders well, especially those previously excluded Nigerians.
Beyond the huge cost-per-session, this would render the laudable financial inclusion initiatives of the Federal Government of Nigeria unsustainable which would impede development and economic growth. We will resist the move to reverse billing by multinational telecomms companies for the good of our National agenda. Reverse billing gives no visibility to on actually sessions used forces to pay for failed sessions and leaves us exposed to spurious USSD usage that will increase costs.
We are proposing an orderly implementation end-user billing for bank customers, aligning with the standard practice for USSD billing. Customers using non-bank services already pay for USSD sessions. It forces cost transparency between the Telecoms Company and customer, and will ensure the customer demands a reliable service that works when they need it at a price they can afford. In the Reverse Corporate Billing situation we are unable to attain competitiveness nor transparency.
We trust that on understanding our concern, and the perilous impact that your stated actions will have on the National Financial Inclusion Strategy, you will implement end-user billing to ensure customers have a fair deal and a choice. Our relationship until this juncture has been a symbiotic one that benefits the millions of users of cost-effective banking solutions, the banks and the telecom companies for whom Bank channels have become one of the biggest sellers of airtime using the same USSD channels and other applications or integrations. If USSD services are used to ransom banks into exiting our financial inclusion goals, everybody will lose out – most notably the vulnerable, financially excluded Nigerian.
We look forward to immediate dialogue and appreciate your response by Monday 23rd September. Yours faithfully,
Bank CEOs of Nigeria.
