E-Financial
World Payments Report Shows Strong Consumer Demand for Digital Payments
Digital payments are experiencing a boom, according to the World Payments Report 2018 launched by Capgemini and BNP Paribas.
The report forecasts that noncash transactions will post a compound annual growth rate of 13 percent until 2021, following growth of 11 percent in 2015–2016, when the total volume of noncash transactions reached 483 billion.
This boom is being driven by developing markets, with CAGR in Russia (37 percent), India (33 percent) and China (26 percent) most notable during 2015–2016. Mature markets maintained steady growth of more than 7 percent, according to the report.
For the next five years, developing markets are set to show a 22 percent CAGR, led by Asia at 29 percent. By 2021, developing markets are expected to account for approximately half of all noncash transactions, overtaking mature markets, whose current share stands at 66 percent.
Still, regulatory and technical complexity present challenges to new payments ecosystems.
Executives surveyed said that lack of interoperability between schemes (74 percent) and weak standardization of data and authorization (59 percent) were inhibiting adoption of a real-time payments infrastructure.
Regarding distributed ledger technology, or blockchain, 86 percent of executives cited lack of interoperability as a limiting factor; 83 percent pointed to a lack of regulatory clarity; and 77 percent questioned scalability.
Only 38 percent of bank executives surveyed for the report said they were “planning an anchor role” in new payments ecosystems, a stance they might want to rethink, according to Anirban Bose, CEO of Capgemini Financial Services and member of the group executive board.
“With their significant market share in the payments industry and implementation of new technologies, banks are in a unique position to shape the marketplace,” he said. “They can also create new revenue streams through innovative, collaborative relationships with fintechs and active participation by the broader financial services community.”
E-Financial
Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme
“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.
E-Financial
CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering
Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.
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.
E-Financial
CBN Urges Banks to Expedite Action on Recapitalisation
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.
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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