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Banks Spend N34.2Bn on IT, e-Business Infrastructure

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Given the drive to support the Central Bank of Nigeria (CBN) policy on cashless society and leverage on Information Technology, a total of eight deposit money banks have spent N34.2 billion on IT and electronic business infrastructure in nine months ended September 30, 2017, according to Leadership.

 

Prior nine months, the same banks spent N25 billion on Information Technology-related infrastructure, software, computers and introduction of mobile apps.

 

Commercial banks operating in Nigeria have increasingly depended on the deployment of IT infrastructure to drive their processes, grow their business operations in order to deliver superior financial performance to meet and surpass customer expectations.

 

The banks surveyed are Zenith Bank Plc, Access Bank Plc, United Bank for Africa Plc (UBA), Stanbic IBTC, Fidelity Bank Plc, Union Bank of Nigeria Plc and Sterling bank Plc.

 

Access Bank top Tier-1 deposit money banks when it comes to IT and electronic business expenses, spending N13.3 billion in nine months ended September 30, 2017, an increase of about 50.4 per cent from N8.87 billion reported in nine months ended September 30, 2016.

 

Following Access Bank is Zenith Bank with N8.6 billion on IT expenses from N4.6 billion in prior nine months, while UBA’s IT support and related expenses dropped by 48 per cent to N1.06 billion as against N2.02 billion reported in nine months ended September 30, 2016.

 

Zenith Bank, over the years, became synonymous with the use of IT in banking and general innovation in the Nigerian banking industry.

 

The bank in a statement said, “We have renewed our commitment in ensuring that all our activities are anchored on the e-platform and providing service delivery through the electronic media to all customers irrespective of place, time and distance.

 

“Zenith group only recently scored another first, becoming the first Nigerian institution to be awarded a triple ISO certification by the British Standards International (BSI): the ISO22301, 27001 and 20000 standards”.

 

In reducing its branches network, Union Bank of Nigeria’s expenses on IT related gained 33 per cent to N2.97 billion from N2.23 billion, while Stanbic IBTC expenses on IT dropped by 3.7 per cent from N3.7 billion to N3.59 billion in nine months ended September 30, 2017.

 

Most Tier-2 deposit money banks were spending less on IT, Electronic Business Infrastructures, attributable to smaller networks.

 

Specifically, Fidelity Bank’s IT expenses dropped by 12 per cent to N2.1 billion from N2.42 billion reported in nine months ended September 30, 2016.

 

The MD/CEO of Fidelity Bank Plc, Mr. Nnamdi Okonkwo, in a statement said, the bank is committed to driving its digital banking aspirations in line with the management medium term strategy.

 

“We have been able to sustain our performance trend this year through the following: disciplined balance sheet management, strategic cost reduction and driving our digital banking aspirations which are all in line with the execution of our medium term strategy”, he said.

 

Others are Diamond Bank and Sterling Bank that spent N1.12 billion and N1.33 billion on IT and Electronic Business Infrastructures in nine months ended September 30, 2017.


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E-Financial

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

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“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.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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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.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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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.”

 

 

 

 


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