E-Financial
FG Urged to Disburse TraderMoni through Lendtech Platforms
Lendtech platform operators in the country have urged the federal government through the office of the Vice President Yemi Osinbajo, to disburse TraderMoni loans through the technology platforms in order to attract more Nigerians into the financial inclusion net.
TraderMoni is an empowerment scheme of the federal government created for petty traders and artisans across Nigeria. It is a loan programme.
Faith Adesemowo, Co-founder and CEO, Social Lender, said that lending technology companies across the country have been using technology to disburse loans to people irrespective of their status with different measures to determine their ability and willingness to pay back.
She cited the example of Social Lender’s social reputation score, which can be used to profile applicants’ details in order to ascertain who is eligible for loan and loan repayment.
A similar procedure should be extended to the “petty traders and artisans who are a direct beneficiary of TraderMoni”, she said.
She added that the score will evaluate the type and size of formal credit the trader requires for her business or personal needs.
According to her, if TraderMoni partners with the lendtech firms’ such cooperation will ensure that before loans are disbursed, recipients would have gone through financial literacy sessions to educate the applicants on money management, investment instruments and the benefits accruable from such venture.
“Currently our loan default ratio is under 5%. This is good for unsecured lending if you compared with the microfinance and other conventional lenders.”
She explained that Social Lender is a digital financial services platform that financial institutions can leverage to extend service and value to the under-served and unbanked demography.
Co-founder, Kiakia, Olajide Abiola said that Kiakia has disbursed loans to over 10,000 members of Nigeria Farmers’ Group and Cooperative Society (NFGCS) and the Association of Vocational Artisans in Nigeria (ASVAN) and the process has allowed members of these organizations to operate bank accounts for the first time in their lives. “They are now financially included”, he said.
Olajide stressed that with the huge impact KiaKia has had on people’s lives, the federal government should view the platform as a veritable vehicle for the disbursement of loans to traders across the country.
He said that the approach of KiaKia to lending has fostered growth through responsible borrowing and application of funds. This, according to him, has resulted in non-perform-loan [NPL] of below 2% in the last 3 years.
“As a digital lending platform, we combine a mix of strategies that have made loan repayment of its unsecured and secured credit facilities effective”, he said.
He said KiaKia leverages insurance and movable assets as collaterals to enable SMEs access to critical working capital.
Oluwadare Owolabi, Managing Director/Chief Executive Officer, Xpress Payments, said that financial inclusion allows people and businesses to have access to useful and affordable financial products and services that meet their needs.
Owolabi said that Xpress Payment’s agency banking is one of the tools adopted to bring more Nigerians into the financial inclusion space.
“In many parts of the world, including Nigeria, agency banking is gaining momentum as a key tool for driving financial inclusion”, he said
He explained that agency banking allows customers to access financial services through a third party (agent) on behalf of a licensed deposit-taking financial institution and/or mobile money operator.
E-Financial
Lafarge Africa Launches Girls-in-Tech Programme to Empower Women Innovators
Recognising the underrepresentation of women in the technology sector, Lafarge Africa Plc, has launched the Girls in Tech Program, a pioneering initiative aimed at empowering young women in technology.
Meticulously crafted to bridge the gender gap in tech and empower 10 young females between the ages of 18-25 years from Lafarge Africa Host communities in Cross River State, the program is poised to make a significant impact in the region.
The Girls in Tech Program seeks to harness the unique talents of these young women and introduce them to the dynamic world of technology. By providing them with essential skills and opportunities, the initiative aspires to equip them to become self-reliant as well as problem solvers in society.
In collaboration with Aptech and Arena Multimedia,globally recognized leaders in technology incubation and opportunity, as well as The Bridge Leadership Foundation, the boot camp promises to be a transformative experience for the participating girls, who are eager to make their mark in the tech industry.
Speaking during the onboarding to flag-off in Calabar recently, the Plant Manager, Lafarge Africa Plc, Sotirios Valsamakis, who was represented by the Human Resources Business Partner, Lafarge Africa Plc; Barong Ita, revealed that the program was in line with the company’s commitment to diversity and inclusion.
She also added that the initiative is designed to ignite a spark of inspiration, hope, and possibilities in the heart of the selected girls across the host communities.
“As an organization, people are an integral part of our sustainability drive, and we are invested in building lasting progress by empowering members of our host communities. We also recognize the need for greater and greener diversity and inclusivity within the tech sector.”
Today’s event is not just about launching a program. It is about igniting a spark of inspiration, hope, and possibilities in the hearts of these young women. It is about challenging stereotypes.”
Also speaking at the event, the Cross Rivers State Commissioner for Science, Innovation & Technology, Justin Beshel represented by Edwin Adie, Technical Senior Advisor, Cross Rivers State Ministry of Science & Technology commended Lafarge Africa for the initiative adding that it is in line with the State government’s plan towards science, technology and innovation development.
E-Financial
Hydrogen, CCHub Partner to Encourage Fintech Startup Success
As the country faces economic challenges, the need for adaptive strategies in the fintech industry becomes paramount. In line with this, leading Fintech startup, Hydrogen Payment Services Limited (‘Hydrogen’), has teamed up with Co-creation Hub (‘CcHub’) to host an insightful event themed, ‘Adapting Fintech Business Models to Economic Climes’.
The event, set to take place on Thursday, April 18, 2024, from 12:00 WAT at the CcHub office in Sabo, Lagos, will delve deep into the intricacies of Nigeria’s economic challenges and how these influence the fintech ecosystem.
Participants will gain actionable insights on how to adapt fintech business models to volatile economic conditions by prioritising flexibility, agility, and customer-centricity.
This collaboration underscores the shared commitment of both entities to empower aspiring founders venturing into the Fintech space amidst economic uncertainties.
By leveraging their respective expertise and resources, Hydrogen and CcHub aim to equip emerging entrepreneurs with the knowledge, tools, and support needed to thrive in today’s dynamic economic conditions.
Emeka Awagu, Chief Technology Officer at Hydrogen, commented on the strategic partnership with CcHUB: “Our alliance with CcHUB amplifies our shared commitment to pioneering transformative solutions in Nigeria’s fintech sector.
“By leveraging Hydrogen’s technological expertise alongside CcHUB’s innovative approach, we are primed to set a new standard for fintech excellence and drive impactful change across the industry.”
The event will feature a distinguished panel of industry experts and thought leaders, including, Ina Alogwu, Group Director, Digital Transformation, ARM HoldCo; Emeka Awagu, Chief Technology Officer, Hydrogen, and Miracle Ezechi, Digital Marketing Manager, Hydrogen.
The panel discussion will be moderated to encourage an engaging and insightful conversation on the strategies and innovations required to thrive in Nigeria’s Fintech landscape amidst economic challenges.
E-Financial
Fidelity Bank Reports N124.3Bn Pre-Tax Profit for 2023
Fidelity Bank Plc has recorded a profit before tax of N124.3 billion for the year ended December 31, 2023, indicating a 131.5 per cent increase from N53.7 billion posted in the 2022 financial year.
The bank disclosed this in its 2023 full year audited financial statement issued to the Nigerian Exchange Ltd. (NGX) on Tuesday in Lagos.
Fidelity Bank said it would also pay investors a final dividend of 60k per share and a total dividend of 85 kobo per share for the reporting period.
This represents a 70 per cent increase compared to the 50 kobo per share paid to its shareholders in the previous year.
The financial institution stated that this led to an increase in return on average equity of 26.5 per cent in the year under review from 15.6 per cent in the corresponding year.
According to the financial statement, the bank’s gross earnings increased by 64.9 per cent year over year to N555.83 billion.
The bank stated that this was driven by 81.6 per cent growth in net interest income which increased from N152.7 billion in year 2022 to N277.37 billion in the 2023 financial year.
This led to a profit after tax of N99.45 billion, representing a 112.9 per cent annual growth.
Commenting on the performance, Nneka Onyeali-Ikpe, managing director of Fidelity Bank, said the financial institution closed the financial year with strong double-digit growth across key income and balance-sheet lines.
Ms Onyeali-Ikpe stated that the bank’s performance in 2023 was an attestation of its capacity to deliver superior returns to shareholders despite the difficulties in our operating environment.
She said, “A review of the financial performance showed that the bank grew its net interest income by 81.6 per cent to N277.4 billion. This was driven by a 55.5 per cent increase in interest income, thus reflecting a steady rise in asset yield throughout the year.
“The average funding cost dropped by 20bps to 4.4 per cent due to increased low-cost funds that grew from 83.6 per ent in 2022 to 97.4 per cent in 2023.
“The combination of higher asset yield and lower funding cost led to an increase in net interest margin of 8.1 per cent from 6.3 per cent in 2022 financial year.”
According to her, the total customer deposits crossed the N4 trillion mark, as deposits grew by 55.6 per cent from N2.6 trillion in 2022.
She noted that the increase was driven by 81.1 per cent growth in low-cost funds.
Mrs Onyeali-Ikpe explained that despite the challenging operating environment, the bank reaffirmed its devotion to helping individuals grow and inspiring businesses to thrive.
She said the bank also committed to empowering economies to prosper by increasing net loans and advances to N3.1 trillion from N2.1 trillion in the 2022 financial year.
The managing director stated that despite the growth in its loan portfolio, regulatory ratios were maintained well above the required thresholds.
Mrs Onyeali-Ikpe noted that the bank liquidity ratio stood at 45.3 per cent in the year ended 2023, from 39.6 per cent in the year 2022, while the capital adequacy ratio rose to 16.2 per cent, compared to the minimum requirement of 15.0 per cent.
“We recognise the changing dynamics in the Nigerian banking space and the need to monitor and proactively manage evolving risks. The proposed final dividend of 60 kobo per share reflects our commitment to strong value creation and returns to our shareholders.
“Fidelity Bank has consistently paid dividends since 2006,” she said.
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