By Collins Nweze

The Board of Directors of First City Monument Bank Limited has announced the appointment of Mrs. Oluwatoyin Olaiya as Executive Director, Risk & Compliance.

This followed the approval of the Central Bank of Nigeria (CBN).

Mrs. Olaiya is a finance and risk management professional with over 30 years’ experience. Prior to her appointment, she was the Chief Risk Officer/Divisional Head Risk Management, FCMB, overseeing Enterprise Risk Management, Risk Policy, Credit Administration, Credit Underwriting and Monitoring.

Read Also: Banking: The women have come

She has been responsible for redefining the bank’s risk policies, improving risk management culture across the institution, and proactively ensuring the implementation of a cyber security strategy for the bank.

She started her career as an auditor with KPMG, from where she moved to various roles in domestic operations, internal audit, business development, financial control, compliance and enterprise risk management in the banking industry.

She joined FCMB in 2016 from Sterling Bank, where she was the Acting Chief Risk Officer.

Mrs. Olaiya is an Accounting graduate of the University of Ife (now Obafemi Awolowo University), and a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN).

With six out of 23 commercial banks in Nigeria run by women CEOs, a new era of women leadership in the financial sector has set in. Still, the 26 per cent representation of women at the top echelon of banks falls short of the 40 per cent board position set for the lenders by the Central Bank of Nigeria (CBN). COLLINS NWEZE captures the significant strides made in actualising a gender-diverse workforce at the senior-management and board levels in banks.

Gender diversity in the workplace is a global hot topic any day. Women have for years remained in the background in the running of top businesses in key sectors of the economy.

This persists despite opposition from local and international institutions demanding gender equity in the workplace.

The banking sector, as with almost other business sectors, is dominated by men, especially at the top management and board levels.

Findings showed that many people see women as lacking the ruthless nature required to operate at senior levels. Still women’s soft skills like ability to build bridges and mediate in conflicts usually give them an edge over their male counterparts.

Interestingly, the gender gap in the sector is gradually being bridged with significant improvement in the number of women holding key positions and successfully driving growth in their institutions.

Today, six out of 23 commercial banks, representing 26 per cent, are run by women Managing Directors/Chief Executive Officers (CEOs).

Guaranty Trust Bank has Mrs. Miriam Olusanya as Managing Director; Mrs Nneka Onyeali-Ikpe is the Managing Director of Fidelity Bank; Mrs. Yemisi Edun is the Managing Director of First City Monument Bank (FCMB) Limited and Mrs. Ireti Samuel-Ogbu, is the Country Officer for Nigeria/Managing Director/CEO Citibank Nigeria.

Others are Mrs. Halima Buba, who  is the Managing Director/CEO SunTrust Bank Limited while Mrs. Tomi Somefun is the Managing Director/CEO Unity Bank Plc.

Mrs Olusanya has over 23 years’ banking experience that cuts across Transaction Services, Asset and Liability Management, Financial Markets, Investment Banking and Investor Relations.

She holds a Bachelor of Pharmacy   from the University of Ibadan, Nigeria and a Master of Business Administration (Finance and Accounting) from the University of Liverpool, United Kingdom.

Mrs Olusanya is expected to help strengthen the bank’s long-term competitiveness and growth prospects.

The appointment of Mrs. Onyeali-Ikpe is expected to help Fidelity Bank Plc consolidate on its growth and achieve greater strides.

Mrs. Onyeali-Ikpe is the fourth Chief Executive and first female to occupy the position since the inception of the bank in 1988.

She succeeded Nnamdi Okonkwo, who retired on December 31, 2020, after completing his tenure. Mrs Onyeali-Ikpe is expected to build on the foundation and track record of performance in place to execute the next growth phase.

Mrs Onyeali-Ikpe was Executive Director, Lagos and Southwest Directorate. She was an integral part of management having joined the bank in 2015. She spearheaded the transformation of the Directorate, leading it to profitability and impressive year-on-year growth across key performance metrics, including contributing over 28 per cent of the bank’s profit before tax, deposits and loans.

Equally, the Board of Directors of FCMB Group Plc appointed Mrs. Edun following the end of service of the bank’s former Managing Director, Adam Nuru.

Mrs Edun was previously the Executive Director/Chief Financial Officer of the bank and served as the acting Managing Director.

With a work experience spanning nearly 35 years, Mrs Edun holds a Bachelor in Chemistry from the University of Ife, Ile-Ife and a Masters in International Accounting and Finance from the University of Liverpool, United Kingdom.

Another top banker, Mrs. Samuel-Ogbu, previously served as managing director of payments and receivables, treasury and trade solutions for Europe, Middle East and Africa at the group’s office in London.

She had been on the Board of Citibank Nigeria Limited since 2015 as a non-Executive Director.

In the last 32 years, Mrs Samuel-Ogbu has held various roles across Citi’s businesses in the UK, Nigeria and South Africa, having worked in each of these countries twice.

Mrs. Somefun of Unity Bank Plc, had prior to her appointment as Managing Director/CEO in August 2015,  served as the Executive Director overseeing the Lagos and Southwest Business Directorates, the Financial Institution Division and Treasury Department of the Bank. She is a Member of the Board Finance & General Purpose Committee, Board Risk Management Committee, Board Credit Committee, amongst others.

Also, Mrs. Buba of SunTrust Bank Limited, has over 20 years’ cognate experience from working in Allstates Trust Bank, Zenith Bank, Inland Bank Plc, Oceanic Bank Plc and Ecobank Nigeria Limited.

She holds a Bachelor of Science  in Business Management from the University of Maiduguri and an MBA from the same university.

Aside the CEO positions, the number of women in other top management positions in banks is also on the rise.

The beginning of a long journey

Banks are increasingly under pressure to ensure diversity within their boardrooms with some scholars seeing board diversity as a demographic phenomenon entailing age, gender, and ethnicity.

The International Finance Corporation (IFC) report on gender equality says there are evidence of improved performances in banks led by women CEOs.

The report stated that Chief Bola Kuforiji-Olubi was the first woman to be appointed to chair the board of a bank, United Bank for Africa (UBA), in 1984.

In 2012, under the leadership of the then-Governor of the Central Bank of Nigeria (CBN) Sanusi Lamido Sanusi,  the apex bank approved the Sustainable Banking Principles, mandating  banks to ensure that at least 40 per cent of the management team is women. The banks are also required to disclose in their annual reports, statistics on female representation.

This is the administration’s bid to institutionalise corporate governance principles and best practices in the banking industry.

On September 7, 2015, FirstBank of Nigeria Limited announced the appointment of Mrs. Ibukun Awosika as its chairman. This appointment made her the first woman to assume that position since the establishment of First Bank of Nigeria in 1894.

In 2015, Mosunmola Belo-Olusoga replaced Gbenga Oyebode as chairman of Access Bank Plc.

Also in 2015, Osaretin Demuren was appointed chairman of GTBank. She is the first woman to hold that position.

Under Mrs Osaretin as GTBank Chairman, the bank was regarded as the best managed financial institution in Nigeria and has, over the past decade, embarked on a period of unparalleled growth, growing its customer base from less than three million customers in 2011 to over 24 million customers in 2020.

The bank’s profit before tax rose from N45.5 billion at the end of the 2010 financial year to N238.1 billion at the end of the 2020 financial year.

Mrs Osaretin and Awosika have left GTBank and FirstBank.

CBN, Bankers’ Committee step in

The CBN and Bankers’ Committee have also stepped in to guide banks into achieving gender equity in their institutions, affirming that 40 per cent of top management positions in banks be reserved for women.

CBN Governor Godwin Emefiele reaffirmed the gender equity position  at a commemorative webinar hosted by the bank’s Deputy Governor, Financial System Stability, Mrs. Aishah Ahmad, as part of activities to mark the  International Women’s Day.

Speaking on the theme: “Women in leadership: Achieving an equal future in a COVID-19 world”, Emefiele said gender equity for women in boards of banks is being pursued.

He urged stakeholders in private and public organisations to ensure all-round gender development and equal opportunities, to increase the number of women in leadership positions in Nigeria and across the world.

The CBN boss restated the bank’s commitment to promote gender diversity in the workplace, empower women and increase their active participation in the economy.

He said the CBN recognised the potential of female leaders in different organisations and the Nigerian economy at large, hence it ensured equal opportunities for male and female staff members across every cadre in the bank.

Emefiele stressed the need to have appropriate policies in place in addition to making the right investments in programmes and services to promote women’s leadership and gender parity to enable them to contribute to the economy.

He said there was overwhelming evidence that organisations with a high level of female participation fared better than others.

Executive Resident, University of Oxford, Ms. Arunma Otteh highlighted the critical leadership roles occupied by women, noting that women were key to societal advancement.

Making a business case for gender equity, Ms. Otteh, a former Treasurer and Vice President, World Bank, noted that women economics was “SMART” economics, citing statistics that indicate women re-invest up to 90 per cent of their resources into their families and societies.

She stressed the need to critically address the challenge of security to earn economic prosperity, saying that women remain Nigeria’s last hope to tackling insecurity and life endangering situations.

Boards and gender equity in banks

In a seven-person board membership, GTBank has two women aside the Managing Director. They are Ms. Imoni Akpofure, Independent Non-Executive Director and Mrs. Victoria Osondu Adefala, Independent Non-Executive Director.

Aside the Managing Director, Fidelity Bank has only one woman on its 13-person board membership. Mrs. Amaka Onwughalu was appointed to the Board of Fidelity Bank as a Non-Executive Director, effective December 15, 2020.

FCMB’s nine-person board membership has only two women aside the Managing Director. They are Mrs. Mfon Usoro – Non-Executive Director, Independent and Ms. Olayemi Keri – Non-Executive Director, Independent.

Unity Bank’s nine-person board membership has two women aside the Managing director. They are Yabawa Lawan Wabi, Non-Executive Director and Oluwafunsho Obasanjo, Non-Executive Director.

SunTrust Bank Nigeria’s six-person board membership has only one woman, aside the Managing Director. She is Noris Okafor, Regional Business Executive –Southsouth.

Other women bankers of repute

A top banker, Mrs. Sola David-Borha retired as Standard Bank Chief Executive for Africa Regions in June, after 31 years of distinguished service to the group.

Sola was appointed as the Chief Executive of Africa Regions in January 2017 and has been a passionate advocate of culture change and executive leadership development.

Another top banker is Mrs. Bola Adesola, who is the Senior Vice-Chairman, Standard Chartered Bank Group.

She  is responsible for supporting the execution of the bank’s strategic intent within the Africa region.

Her role includes representing Standard Chartered Bank on various Boards in Africa. She  leads as the Group’s Senior Banker on key relationships and transactions.

Bola joined the bank on March 2011 as the CEO of Standard Chartered Bank Nigeria Limited and subsequently became the CEO for Nigeria and West Africa in 2015.

The IFC report added that the board is the most influential decision-making unit of an organization, with responsibilities ranging from making key financial and strategic decisions to choosing the company’s top executive leadership.

It explained that given the level of expertise and the amount of information needed to understand and govern today’s complex businesses, it is unrealistic to expect an individual director to be knowledgeable and informed about all phases of business . This is where the concept of board diversity comes into play.

Other analysts said that bridging the gender divide in the workforce is not only a matter of fairness, but also of effective governance and inclusive economic growth.

By Collins Nweze

Climate change tops the list of long-term risks for banks, a survey by Ernst & Young (EY), a global tax and auditing firm says.

The 11th EY and Institute of International Finance (IIF) Bank Risk Management Survey, entitled: “Resilient banking: capturing opportunities and managing risks over long- term”, which surveyed 88 financial institutions across 33 countries, provides a window into the changes in risk management seen globally during the past decade, and the major risks anticipated over the next 10 years.

More than nine in 10 finacial instititions (91 per cent) surveyed said bank chief risk officers (CROs) view climate change as the top emerging risk over the next five years. Only about half (52 per cent) of CROs said the same in 2019.

In the near-term, almost half (49 per cent) of CROs view climate change as a top risk requiring their urgent attention over the next 12 months. In 2019, only 17 per cent took that view. Beyond climate change, the most important emerging risk, according to CRO respondents, is the length and depth of the global economic recovery (83 ).

Partner, Banking & Capital Markets Sector Leader, EY West Africa, Benson Uwheru, says:  “In the past year, we saw climate change rapidly ascend to the top of banks’ long-term risk agendas for the first time. Bank boards and senior management must remain resilient across a broader set of dimensions as the world adapts to a post COVID-19 world, and it’s clear that includes climate-related risks, as well as other environmental, social and governance matters.”

The survey finds that banks in practice are still maturing in their ability to assess physical and transitional risk exposures: just over half (54 per cent) have a preliminary understanding of their climate change risk exposure and more than a quarter (28 per cent) have a somewhat complete understanding.

EY Regional Managing Partner for West Africa, Anthony Oputa, adds: “Beyond the issues around technology and data and the pace and breadth from digitisation driving the entire business processes, business leaders and decision makers see climate change as one of the most critical and defining issues of our time that requires urgent attention.

“Financial institutions, which seem to be the most affected, have the responsibility to consider and treat every climate-related risk, and all other environmental, social and governance issues with all seriousness. The time to act is now amid the global economic recovery from the COVID-19 pandemic.”

In the near-term, banks believe credit risk will be the No. 1 concern over the next 12 months – according to 98 per cent of CROs – amid the global economic recovery from the pandemic. Cybersecurity is perceived to be the second most urgent risk (80 per cent).

Uwheru further says: “While cybersecurity has long been the leading immediate concern for CROs, the COVID-19 pandemic changed the game. The breadth and depth of the pandemic’s shock to the global economy has brought credit concerns to the forefront for banks over the next 12 months.”

Other key survey findings include almost one in three (29 per cent) of banks believe they can manage down costs of controls over the next three years by using data and technology to improve risk management.

Seven of the top 10 emerging risks according to CROs relate to technology and data, including the pace and breadth of change from digitization (68 per cent), industry disruption due to new technologies (68%) and obsolescence/legacy systems (62 per cent).

Also, based on lessons learned from the COVID-19 pandemic, 93 per cent of CROs expect to see the introduction of new or additional regulatory requirements on operational resilience, and 60 per cent of CROs expect the same on financial resilience.

The CROs expect their banks to further accelerate their digital transformation, including by automating processes (88 per cent), modernizing core technology platforms (66%) and delivering enhanced insights to customers (64 per cent).

The Central Bank of Nigeria (CBN) has granted non-interest banking licence to Lotus Bank Limited. The new licence provides opportunity for Lotus Bank to contribute to over $2.2 trillion global assets in the non-interest banking, which is expected to hit $4 trillion by next year. Lotus Bank’s entry into the sector has created opportunity for millions of entrepreneurs seeking zero interest capital to fund their businesses while bringing more people into the financial services net, writes COLLINS NWEZE.

When a Muslim cleric, Abubakar Moshood, informed his friend and entrepreneur, Ahmad Yusuf, that Sharia law forbids paying interest on borrowed funds, it surprised the latter. Yusuf, a cocoa trader, based in Osun State, quickly returned N1 million loan he got from a commercial bank to the lender, and turned to the fast-growing industry of non-interest banking.

Non-interest banking is a market that has doubled in size over the past five years and is worth more than $2.2 trillion, with demand forecast to soar to new heights.

Yusuf returned the loan just one week after he got the cash from his bank. “A cleric told me it is not permissible under Islam to take loans from a non-Islamic bank because they charge interest,” the entrepreneur said.

A few days later, he arranged for a loan from an non-interest bank after paying a $100 service charge. Non-interest banking customers, aside being mainly Muslims, are attracted to the finance model by its flexibility, link to real economic activity and its ban on transactions involving speculation or uncertainty.

That explains why non-interest banking is gaining ground in Nigeria. Besides Nigeria, global acceptance for the banking model is increasing daily despite initial hitches to its survival. According to Standard & Poor’s (S&P), non-interest finance remained a demand-driven market, with scarce supply, still hampered by a limited range of Islamic financial centres and their various regulatory frameworks.

The rating agency said it believed that regulatory efforts to accommodate non-interest finance and the establishment of additional industry bodies at national levels is taking center-stage. Interestingly, newcomers in the industry such as Oman, Turkey, and Nigeria, for instance have started to trace the footsteps of fast-growing pioneers, such as Malaysia.

“Right behind the newcomers, a long line of countries is aspiring to enter the market, with the continent of Africa in the forefront,” it said.

 

Lotus Bank steps in

The Central Bank of Nigeria (CBN) recently granted a non-interest banking licence to Lotus Bank Limited.

Its Managing Director, Mrs. Kafilat Araoye, said the bank’s focus and guiding principle is ‘to deliver an alternative option to interest-based banking and to cater to the needs of not only the banked but also the underbanked and unbanked’’.

She said the bank is  creating value and growth for all through digital innovation and best-in-class customer experience for Nigerians. “Our values are deeply rooted in partnership. A critical component of our mission is the provision of innovative solutions that drive ethical prosperity for all stakeholders. We pride ourselves on digital solutions that provide our customers with the convenience of unlimited access to our services and products.

“Non-Interest Banking is geared towards supporting the real sector and Lotus Bank aims to improve financial inclusion in the country.  In addition, the bank will operate transparent pricing models as is the norm in non-interest banking, Mrs Araoye added.

Araoyo has 30 years’experience in banking. She has expertise in virtually all areas of core banking, with emphasis on international and domestic operations, payments, general management, business development, risk management, human resources and strategy.

According to Lotus Bank founder & Chairperson Mrs. Hajara Adeola, the bank is starting its operations on a solid foundation of experienced leadership and a strong Advisory Council of Experts (ACE). Adeola is also the founder and Managing Director of Lotus Capital.

“Our products and service offerings will include non-interest Business Financing, Deposit Products (current, savings and investment accounts) and personal financing. The bank aims to be a socially responsible organisation that will satisfy its customers across all touch-points,” Adeola added.

With its flagship branch located at Adetokunbo Ademola Street, Victoria Island, Lagos, the bank will open its doors to customers from this month.

“Lotus Bank is a non-interest Nigerian bank deeply rooted in ethical banking and committed to ethical investing and ethical prosperity. The bank is  committed to deepening financial inclusion and broadening the array of non-interest products available to the banked, unbanked, and under-banked population,” she said.

According to her, the bank’s values are bold, ethical, and birth new ideas. They are a testament to its desire to deliver a differentiated customer experience that supports businesses and supplies shareholder value.

Prior to founding Lotus Capital where she is the Chief Executive, Adeola worked with Arthur Anderson Consulting (now Accenture).  She was also a Director at UBS Warburg, heading their London Islamic Finance Desk.

Adeola explained that Lotus Capital Limited is a full-service ethical investment management company specialising in asset management, private wealth management, and financial advisory services. “Lotus Capital is a pioneer in non-interest finance in Nigeria and duly registered with the Securities & Exchange Commission (SEC) as Fund Managers,” she said.

Before joining UBS, she was a convertible bond research analyst at BNP Paribas, London, where her primary responsibility was to analyse, write, and publish daily and quarterly research on European convertible bonds. At a point, she was with ARM Investment Managers. Adeola is regarded as the top industry expert in Islamic fund management in Nigeria.

Adeola holds a Masters in Finance from Durham University, where she specialised in Islamic Finance. She also holds an MBA in International Management from Exeter University and a Bachelor of Science Degree in Pharmacology from King’s College, London.

She is a Fellow of the Africa Leadership Initiative West Africa and a member of the Aspen Global Leadership Network.

Speaking at the London Stock Exchange on the rising acceptance of non-interest banking, Global Managing Director of Islamic Finance at J.P. Morgan, Hussein Hassan, explained that the main difference between islamic finance and conventional finance is the prohibition on charging and receiving interest.

The second is the prohibition against excessive speculation.

“The way these two prohibitions play out is mainly in the documentation. What these prohibitions are based on is the concern against having excessive leverage in the system; that is what the prohibition on it interest is based on. The need to  stop the creation of financial crisis through speculative behavior is what the second prohibition is based on,” he said.

He said financial outcome is the same with conventional finance, but the form of securing the loans is different.

Hassan added that Islamic finance is based on ethical and religious values, hence  investment in tobacco, gambling, pornography are not permitted. He said global assets in Islamic finance stands at $2.2 trillion and is expected to hit $4 trillion by 2022.

 

Non-interest banking

Non-interest banks, typically, do not give out loans except under an interest-free loan arrangement for social solidarity or very micro businesses. They are basically engaged in partnerships, buying and selling at a markup price, and buying and leasing.

Like other sectors, it is affected by the economic performance of the country. So, the first challenge is that if an non-interest bank has N1 trillion in its books as deposit, it cannot buy T-Bills or bonds because they are interest-based.

The bank would also not be able to invest in other interest-bearing securities and deposits except in compliant instruments like Sukuk.

 

Loan opportunities

To boost non-interest banking and make more loans available to farmers, the CBN unveiled the policy guideline that will outline how farmers with bias for alternative finance could apply and benefit from its agricultural programmes.

The apex bank funded value chains of nine commodities worth N432 billion in the 2020 wet season. Some of the commodities funded are rice, maize, livestock, fish, oil palm, cowpea and poultry, among others.

CBN Governor, Godwin Emefiele, had directed the Development Finance Department of the apex bank as well as the NIRSAL Microfinance Bank (NMFB) to fast-track the approval process of loans, which are meant to help restore businesses and livelihoods.

 

CBN’s regulation

An essential governance structure and element of regulatory oversight for institutions offering non-interest financial services is the establishment of an advisory body at the level of the Central Bank. The bank is to provide assurance that the strategic direction and conduct of financial transactions of Non-interest (Islamic) Financial Institutions (NIFIs) are in compliance with the rules and principles underpinning their operations.

Also, Section 9.1 of the CBN Guidelines for the Regulation and Supervision of Institutions Offering Non-Interest Financial Services in Nigeria provides for the establishment of an advisory body at the CBN on Islamic banking and finance.

 

Capital base

The CBN guidelines on non-interest banking put the minimum capital base of N10 billion for National Islamic Banks and N5 billion for regional Islamic banks. However, the regulator allows deposit money banks to offer non-interest banking products, using existing structure such as the branches, even manpower.

The Debt Management Office (DMO) said  the acceptance of the N100 billion debut Sukuk  offer by Nigerians was an indication of the viability of the instrument as an investment option as well as a demonstration of utmost faith in the economy.

Hassan said a Sukuk is an Islamic bond that’s set up to generate returns to investors while remaining compliant with Islamic law, which doesn’t allow riba or interest. The Sukuk holders each have undivided ownership of the underlying asset.

Managing Director Credit Bureau, Ahmed Popoola said at the 10th Annual Lecture of Muslim Lawyers Association of Nigeria (MULAN) in Lagos with  theme: “Pulling Nigeria out of the economic recession” that bond issuance is key to growth.

He said Sukuk, also called non-interest bond, is an alternative worth exploring to raise funds for public works and to support the private sector access to finance. He stressed  that the options that alternative finance offers in  funding public infrastructure and empowering small business will help bail the country out of recession.

He explained that worldwide, Sukuk bond is no more peripheral to conventional finance as  it is being operated in 75 countries, including western nations. “People think that the non-interest financial system is based on faith, but it is based on justice for the two parties. Besides, the system does not allow investments that harm people  or the environment,  thereby promoting sustainable finance,” he said.

Other analysts believe that many Islamic financial markets had established their presence in the major financial centres and were playing key roles in deepening the financial markets with products across the globe.

They insist that in the face of the growing interconnectedness of the global financial system and its integration, it is unrealistic for any existing or aspiring financial centre to be oblivious of this development.

Access to credit has remained a major issue, but increasing tech-driven loan apps are opening up opportunities for finances, Tofunmi Sanusi reports

The impact of COVID-19 on the economy, including consumer lending, cannot be overstated. Various measures by the government to curtail the spread and transmission of the deadly virus, including lockdowns, resulted in contraction of the economy, rising unemployment and decreasing disposable incomes.

The uncertainty in the economy also impacted the financial services sector. Lending institutions were initially cautious about committing to new loan facilities. A number of banks reportedly failed to meet the Central Bank of Nigeria (CBN’s) 65 per cent loan-to-deposit ratio.

Increasing access to credit facilities for businesses and individuals could, therefore, be a needed stimulus to increase economic activities in Nigeria. This, analysts said, would bolster efforts towards the recovery of the economy in the short-to-medium terms.

To underscore this, the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, reported that  banks increased their total loans to the economy by N3.3 trillion in June, last year. According to the monetary policy document released by the regulator, banks’ total gross credit rose from N15.56 trillion in May to N18.9 trillion as at end of June, last year.

In conformity with the new realities occasioned by the pandemic, strategies that promote contactless activities, have continued to evolve within the financial services sector.

Banks, especially, rank high among those leveraging advanced technology and innovations to increase access to credits; as well as drive financial inclusion by expanding the frontiers of digital banking platforms and channels.

Euromonitor International’s Consumer Lending in Nigeria report establishes that the size and structure of the market for ATM cards, smart cards, credit cards, debit cards, charge cards, pre-paid cards and store cards have continued to grow in leaps and bounds.

Easy and fast-loan application or credit processing is one exciting lifestyle that is gaining momentum in Nigeria. A cursory look at the credit market throws up the following easily accessible and visible five best quick loan apps, according to Abimbola Yewande, a Lagos-based credit analysts, who listed VULTe by Polaris Bank, Carbon, PalmCredit, Branch and Renmoney, among the leading quick-loan apps.

 

VULTe

Polaris Bank recently launched its 100 per cent self-service digital solution, VULTe, as a stimulus for increasing accessibility to quality banking services, as well as lowering the barriers for accessing credits up to N5 million, for both customers and non-customers of the bank.

VULTe is a full digital bank that provides individuals with fast, convenient and reliable solutions to their banking needs. Some of its unique features include QR payments, end-to-end account opening and debit card request and issuance and activation, without the customers leaving the comfort of their homes, offices or wherever they may be.

The platform does not just cater to Polaris Bank customers alone; as non-customers of the bank can also download and enjoy banking services on VULTe as well.

Another key feature is VULTe’s API Banking, which allows merchants/businesses integrate VULTe with other business critical systems, enabling a portfolio of services, including risk assessment, bank statement requests, lien accounts, and direct debits.

Much more than an app, Polaris Bank’s Chief Digital Officer, Dele Adeyinka, explained that VULTe’s instant loan feature is a very unique innovation with which the bank is deepening Nigeria’s loan market, among several other functions and benefits hard to get elsewhere.

”VULTe allows a customer and non-customer of Polaris Bank to request and get instant loans within two minutes right in the palm of their hands, using your smartphone,” Adeyinka said.

To be eligible to use VULTe, a prospect/customer have to be 18 years or older. The platform is also open to SMEs and corporate firms, and can be found and downloaded on the Google Play and Apple store.

 

Carbon

Carbon requires applicants to provide their BVN to run a check on their credit, before loan request can be approved. Individuals can access up to N1 million.

Though the process is seamless with no paperwork, guarantors or collateral needed, Carbon, however, provides individuals with cash back on interest paid when loans are paid back on time.

The platform also allows individuals pay bills, invest and receive credit reports across financial institutions.

 

PalmCredit

Individuals in Nigeria can get loans from PalmCredit without providing collateral. PalmCredit offers low-interest rates on its loans and thus making it an attractive and popular money lending platform in Nigeria.

It is only available to individuals 18 years and above, and loan applicants can borrow as little as N2,000 and as much as N100,000.

To qualify and receive a loan, customers have to follow three easy steps of registering a PalmCredit account, getting approved, and then, receive payment to their account. Each time you repay a loan, your loan limit increases to the N100,000 mark.

 

Branch

Branch is one of the best loan apps in Nigeria and unlike its competitors, it also functions in other countries like Kenya, Mexico, and India.

Its major USP is that, as customers build credit with Branch, so does their loan limit. All you have to do, is apply through the app and get approved for thier loan within 24 hours. Branch does not charge any fees.

Customers are free to use the credit they get from the platform for anything they prefer, as no official will ask them the purpose for which the loan is requested.

 

Renmoney

Renmoney is a very popular loan platform that supports micro, small and medium businesses financially.

To qualify for a loan, a customer have to be between 22 and 59, have a verifiable source of income, and live or work in cities where Renmoney operates.

Individuals can borrow up to N6 million for up to 24 months. To be approved for a loan, a customer’s bank statement must prove that the loan could be repaid within the  repayment period.

According to Euromonitor, a positive outlook for Nigeria’s economy in terms of recovering from recession induced by COVID-19, has been predicted from this year. And this can set the stage for increase in demand for consumer lending. The willingness of lenders to increase opportunities for individuals and businesses to access credits, therefore, will be of utmost importance.

 

By Collins Nweze

The Mastercard Foundation has signed the Host Country Agreement with Nigeria. The pact will enable the Foundation to empower 10 million young people in Nigeria to access dignified and fulfilling jobs, 70 per cent of whom will be young women.

Speaking during the signing ceremony held at the Ministry’s office in Abuja, the Minister of State, Ministry of Budget and National Planning, Prince Clem Agba noted that the Mastercard Foundation’s Young Africa Works in Nigeria strategy is aligned with the national development plan of the Federal Government.

Speaking at the ceremony, the Nigeria Country Head for the Mastercard Foundation, Chidinma Lawanson explained that the signing of the agreement has further strengthened the Foundation’s commitment to providing millions of young Nigerians with work opportunities that will meet their aspirations and full potential.

Lawanson stated that Young Africa Works in Nigeria currently focuses on three key economic sectors, including agriculture, creative industries, and the digital economy with additional sectors being considered to further increase opportunities for youth.

The Mastercard Foundation is working with a range of partner organizations to realize its goals in Nigeria, including Enterprise Development Centre (EDC) of the Pan African University, the International Institute of Tropical Agriculture (IITA), Sahel Consulting Agriculture & Nutrition Ltd, Jobberman, and Babban Gona.

“We have formed partnerships with several organizations and are working together to leverage each other’s strengths,” Lawson said.  ”Through our focus areas of agriculture, creative, and digital economies, we have aligned with the Federal Government’s National Development plan to ensure we reduce unemployment in the country and unlock the skills and creative abilities of our youth, particularly young women,” she added.

Ms. Lawson also confirmed that the Foundation’s Young Africa Works initiatives in six other African countries are creating growth opportunities for women-owned enterprises and enabling young people to acquire market relevant skills that are in demand by growing businesses in key sectors of the economy.