Connect with us

E-Financial

Banks, FinTech Partnership Key to Drive Financial Inclusion – Expert

Published

on

Kindly share this post

As financial technology (FinTech) gradually seeps into the growth strategies of traditional banks, expert have expressed concern that the two components would need to work together in order to drive financial inclusion in the sector.

The basis for this concern is stemmed from the global best practices where Fintech, the term coined for financial services technology, has become an extremely fast-growing industry worldwide. Its growth has enabled banks in Europe and the US to innovate and develop products to suit customers’ lifestyles.

According to Sola Fanawopo, MD/CEO of eMaginations, and organizer of Ennovators Breakfast Series (EBS), Nigeria is not an exception in the FinTech upsurge.

He said the global investment in FinTech is reported to have reached as high as $80 billion between 2010 and 2016.

“For some time after the global and local financial crisis, traditional banks have laid emphasis on regaining customers’ trust. I am happy that banks have realised the potential of FinTech and are now slowly joining the startups in the race. That is why it is heartening to know that a Nigerian call itself FinTech bank”.

He explained that in large part, FinTech firms are becoming “disruptors” for good, and that the secret to maintaining the banking industry is to nurture the startups through which new technology is birthed. To grow the banking industry, he asked, “Should banks engage FinTechs for competitive advantage, should banks build, partners or acquire FinTechs?”

According to him, bank chiefs and FinTech founders such as Muhammad Jibrin, MD/CEO, of SunTrust Bank, Yele Okeremi, MD/CEO of Precise Financial Systems, John Obaro, MD/CEO of  Systemspecs and Uzoma Dozie, Group MD/CEO, Diamond Bank, would join other speakers at the Oriental Hotel, venue of EBS in March to examine how banks and FinTech should relate. “This edition of EBS will examine if the banks and FinTechs are friends or foes”, he said.

Fanawopo said EBS now in its seventh year is a quarterly cerebral breakfast event conceived to bring the Dreamers, Drivers, and Doers (3D) of technology business in ICT industry across Africa together with the objective of sharing key information that would promote business, impact lives, and birth new business relationships.

“As technology evolves, everything in the world is changing. The way banks, telcos, insurers and others sectors service customers is changing. This will continue to change as technology innovations emerge. EBS examines the preparedness of African firms to meet these changes”.

 


Kindly share this post

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

Continue Reading
Advertisement
Comments

E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

Published

on

Kindly share this post

“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


Kindly share this post
Continue Reading

E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

Published

on

Kindly share this post

Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


Kindly share this post
Continue Reading

E-Financial

CBN Urges Banks to Expedite Action on Recapitalisation

Published

on

Kindly share this post

Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


Kindly share this post
Continue Reading

Trending