First City Monument Bank (FCMB) has introduced a new product called 'Book Now Fly Later' that allows customers to access up to ₦10 million in travel credit for air travel. The product is designed to make flight bookings more accessible by enabling customers to secure their tickets and pay in installments over a period of time.
How the Product Works
Under the scheme, customers can book flights with any airline and defer payment. The credit limit of up to ₦10 million is available to eligible customers, who can repay the amount in flexible installments. The product targets both individual and corporate travelers, aiming to ease the financial burden of lump-sum ticket payments.
FCMB stated that the offering is part of its commitment to providing innovative financial solutions that enhance customer convenience. According to the bank, 'Book Now Fly Later' is available to both existing and new customers who meet the credit assessment criteria.
Eligibility and Repayment Terms
Customers can apply for the travel credit through the bank's digital channels or by visiting any FCMB branch. The repayment period is structured to suit the customer's cash flow, with options ranging from 3 to 12 months. Interest rates and fees apply, and the bank will conduct a credit check before approving the facility.
FCMB emphasized that the product is designed to be transparent, with no hidden charges. The bank also noted that the credit can be used for both domestic and international flights, covering tickets for the customer and their dependents.
Market Context
The introduction of 'Book Now Fly Later' comes amid rising air travel demand in Nigeria, driven by increased business and leisure travel. However, high ticket prices have made it challenging for many travelers to pay upfront. This product is expected to stimulate demand by offering a flexible payment option.
The bank's move also aligns with the growing trend of 'buy now, pay later' services in Nigeria, which have gained traction in retail and e-commerce. FCMB is one of the first banks to offer such a product specifically for air travel, potentially giving it a competitive edge in the travel finance segment.
Customer Benefits
Customers can lock in current flight prices even if they cannot pay immediately, protecting against fare increases. The product also allows travelers to plan their trips without the immediate financial strain. For corporate clients, it can help manage cash flow by spreading travel costs over several months.
FCMB has advised interested customers to download the bank's mobile app or visit its website for more details. The bank also plans to roll out promotional offers for early adopters, including reduced interest rates for the first few months.
