Enhancing Financial Innovation and Access (EFInA) has granted a $250,000 technical assistance grant to Lotus Capital Limited as support for its premier project. EFInA, a financial sector development organisation that promotes financial inclusion in Nigeria, has attracted Lotus Capital by the project tagged “Lotus Health is Wealth Savings Plan”.
Lotus Capital is the provider of non-interest financial services in Nigeria, with a broad spectrum of fund/portfolio management services for individual, corporate and retail clients.
The Lotus Health is Wealth Savings Plan has been described as a dynamic non-interest, fixed income savings product that will also offer health insurance.The Plan is structured around monthly collections of deposits from customers, which will be invested in non-interest, low-risk instruments, and non-interest fixed term investments to give customers returns on their savings.
A small portion of customers’ deposits will be allocated to pay the monthly premiums for health insurance, with a planned pilot scheme in Lagos, Abuja and Kano states. Lotus Capital will target traders, market associations, religious associations, service companies and women pressure groups.
The Chief Executive Officer of EFInA, Chidinma Lawanson, said: “EFInA’s Access to Financial Services in Nigeria 2014 survey revealed that 16.8 million adults, representing 18 per cent of the adult population who do not use non-interest banking products said they are likely to take up such products if they are readily available.
“The Lotus Health is Wealth products add to the diversity and range of affordable financial products to low and middle income segments of the population who may be unbanked and under-banked.
“Insurance penetration is still low in Nigeria, as the survey showed that only one million adults representing 1.1 per cent of the total adult population have insurance, while 14.3 million representing 15.3 per cent of adults said they would be interested in micro insurance products.
“Through the project, Lotus Capital will drive awareness on non-interest finance and enhance financial literacy among the low income targets; given that the company’s direct sales agent will interface with customers to showcase the product.”
The Managing Director of Lotus Capital, Hajara Adeola, said: “Since our founding, we have being dedicated to creating wealth ethically for our clients. Our firm belief is that with the right financial plan and education, everyone can and should improve the quality of their life.
“Through this project, we hope to encourage the development of an investment culture among the low income and financially excluded segment of the population. The Plan’s tie-in with health insurance is intentional as we believe that a healthy body is essential to creating and sustaining wealth.
“While health insurance is mandatory for workers in the formal sector, there are millions of Nigerians who work outside the formal sector and do not have access to health insurance or even formal financial services.
“It is for this reason that the Plan is providing both an investment outlet and discounted health insurance. Our vision is a Nigeria where Nigerians regardless of their position on the economic or social ladder will have access to formal financial services and quality healthcare.
“The project is expected to deepen financial inclusion by broadening the array of non-interest products available to the banked, unbanked and under-banked population. “The Plan will also contribute to the growth of small and medium scale enterprises via the financial advisory services offered to customers. The Lotus Health is Wealth Savings Plan, and indeed all our services are available to people of all faiths”, she added.
EFInA, through this innovation grant aims to promote financial inclusion through market development by enabling provision of appropriate financial products and services at an affordable price to individuals who are under-banked or may be financially excluded.
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