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Oromia Bank Goes Live with Upgraded ICSFS Solution

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Oromia International Bank, a decade-old private commercial bank, has gone live with an advanced core banking solution.

ICS Financial System (ICSFS), a company from the United Kingdom, developed the system that works for interest-free, corporate internet, retail and mobile banking services. The system was fully implemented last month after the duo signed the agreement two years ago.

ICSFS secured the project after vying with seven other companies. FLEXCUBE and ICSFS both passed the technical evaluation and demonstration stages.

After discussing the proposed systems by the two companies with foreign banks that have already implemented their systems, OIB decided to procure the solution developed by ICSFS, according to Wolde Bulto, Vice President of Oromia International Bank, which has 32.1 billion Br in assets and 2.4 billion Br in paid-up capital.

To get training on how to use the system, 40 staff members of the bank traveled to Asia and Europe. The bank officials also traveled to Nigeria and Lebanon, where the same system is being used, checking on how those banks are managing the system.

CBS Solution, that was developed by Indian technology firm Infrasoft Technologies Ltd. The old system was developed five Years age.

“It was implemented when the Bank had a relatively low level of transactions compared to recent times,” according to Wolde.

Currently, the Bank has around 1.5 million active customers and 267 branches across the country.

“Thus, our bank had to search for a new system that could speed up its operations,” Wolde told Fortune.

The old system took two to three hours to process end-of-day transactions, and the new system reduced this to less than 30 minutes. The monthly closing process, which required spending a night, is now done in 45 minutes using the new system.

The software suite future-proof banking activities by providing a broad range of features and capabilities with more agility and flexibility, to enrich customer experience, according to a statement from ICSFS, a company that was established in 2004 and provides business and technology solutions for financial institutions.

The new system also upgrades the Bank’s interest-free banking software. The solution is designed and developed in line with the principles of Shari’ah law in compliance with the accounting and auditing procedures of Islamic financial institutions.

Oromia International Bank, which operates with 5,000 employees, is one of the first private banks that launched interest-free banking window service in Ethiopia.

“After the implementation of the new system,” Wolde said, “it showed a performance gain that significantly enhanced our client’s banking experiences compared to the old system.”

The Bank also launched several electronic banking initiatives, such as a bank card called Oro-Card (ATM and PoS), a mobile banking solution dubbed Oro-Cash, an agent banking project called Oro Agent, and an internet banking programme called Oro-Click.

Commencing operations in 2008 with subscribed and paid-up capital of 279.2 million Br and 91.2 million Br, respectively, the Bank has mobilised 26.5 billion Br in deposits in the recently ended fiscal year. It also disbursed 17.4 billion Br worth of loans and advances.

 


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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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