The Nation Newspaper

Tag: Banks

  • Report: Banks won’t lower lending rates

    Banks are not keen on lowering lending rates even if the Central Bank of Nigeria (CBN) brings down its benchmark interest rate, investment and research firm Renaissance Capital (RenCap) has said.

    It projected that the CBN-led Monetary Policy Committee (MPC) is likely to cut Monetary Policy Rate (MPR) – benchmark interest rate —to 12 per cent from 14 per cent before year-end.

    The MPR has remained at 14 per cent since July 2016. Nigeria’s lending rates have remained one of the highest and have continued to hurt businesses’ ability to borrow and repay loans. Some banks lend to customers at between 30 and 35 per cent per annum, depending on the borrowers’ risk rating.

    In a report titled: Sub-Saharan Africa: Has inflation bottomed? – Implications for monetary policy RenCap said interest rate for Nigeria would drop as inflation nears or gets to single digit.

    “Over the past two years, we have seen inflation slow year-on-year in the countries we cover – from this decade’s peak of 13 to 14 per cent on average in mid-2016 to seven per cent in April. Except for Nigeria, we think inflation has bottomed. This is the reason why we believe the policy rate cutting cycle in Ghana, Zambia, Rwanda and Kenya, albeit short-lived, has ended. In Nigeria, where we think inflation has fallen further, we expect rate cuts to begin in July,” it said.

    However, it said that rate cut is not likely to have a meaningful policy easing effect, as open market operations will keep yields elevated. “At our 16-18 May Annual Pan Africa 1:1 Investor Conference in Lagos, the banks said lending rates are unlikely to fall on the back of rate cuts, as Treasury bill yields are of greater influence.  They also do not see the CBN lowering the cash reserve requirement for fear of undermining the forex rate,” it said.

    It said Nigeria is already near rate cut. In terms of slowing inflation, Nigeria is the exception in the countries under our coverage, in that inflation has yet to bottom. We see inflation slowing year-on-year to 10.8 per cent at year-end 2018, as against 12.5 per cent in April.

    “The Central Bank of Nigeria’s (CBN) Governor Godwin Emefiele would like to cut the policy rate, when inflation falls to the low double-digits/high single-digits. We infer that to mean 12 per cent and below, which we expect from June. We see the policy rate being cut by one percentage point at the July and September meetings, respectively, bringing it down to 12 per cent at year-end 2018,” it said.

    The report added: “We think this implies the impact on credit growth, which stood at 0.3 per cent year-on-year in March, will be small, at best. Lower yields will likely spur a pick-up in lending in 2018; the banks are guiding for 10 per cent credit growth. In 2019, we expect structural factors to keep inflation sticky at  11 per cent. So, expect no policy change,” it added.

    The MPC on Tuesday, kept all policy rates unchanged as with all meetings since July 2016. The committee retained the Monetary Policy Rate (MPR)- benchmark interest rate at 14 per cent; Cash Reserve Ratio (CRR) at 22.5 per cent and Liquidity Ratio (LR) at 30 per cent as well as the retention of the Asymmetric corridor at +200 and -500 basis points around the MPR.

    It said that much to the delight of policymakers in commodity exporting countries, oil prices hit $80.0/barrel mark last week – its highest since June 2014 – against the backdrop of the US exit from Iran’s nuclear deal as well as falling inventory levels and subsisting impact of OPEC’s production cut deal.

  • FinTech big threat to banks, says Emefiele

    The Central Bank of Nigeria (CBN) has identified the rising influence of Financial Technology (FinTech) firms in providing financial services to consumers as a big threat  to banking.

    CBN Governor Godwin Emefiele stated this in Lagos during the Chartered Institute of Bankers of Nigeria (CIBN) investiture of Uche Olowu as its 20th President/ Chairman Council.

    Digital financial technology, or FinTech, and particularly the global spread of mobile phones, has facilitated access to financial services by hard-to-reach populations and small businesses at low cost and risk.

    Emefiele said: “Banking has a common threat. The enterprise risk posed by FinTech is real and there is need to be at the forefront of sensitising the banking sector about the real threats posed by FinTech.”

    The CBN boss, represented by CBN Deputy Governor, Economic Policy, Joseph Nnanna, said the apex bank would look into the threats posed by the FinTech to lender’s operations.

    “The institute must not relent in bridging the knowledge gap among commercial, microfinance and mortgage banks. This is the time banks and the economy are facing cyber insecurity. The CBN will partner with CIBN to ensure that financial transactions are secured,” he said.

    He called on CIBN to be at the forefront of sensitising bankers on the threat by FinTech. Emefiele said: “I also admonish the new president that you will remain focused and avoid omission risk. Do exactly what your predecessor has done; he reached out, he was a superb bridge builder. Up your ante as far as advocacy is concern. Advocacy should be your major focus, in addition to providing solution to the threat pose by FinTech.”

    Olowu said the industry is contending with some challenges triggered by regulations, disruptive models and technologies.

    He sees competition from FinTech and telecommunication firms as part of the issues the banking industry has to contend with.

    “It’s a new dawn for banking in Nigeria because we are playing at the global stage.

    ‘’Findings by Nigeria Interbank Settlement System (NIBSS) showed that banking halls are getting less attractive to customers. Huge transactions now happen outside the banking halls, courtesy of rising influence of FinTech in taking financial services to customers.

    ‘’The NIBSS provides the infrastructure for automated processing, settlement of payments and fund transfer instructions between banks and card companies.’’

    NIBSS Managing Director, Adebisi Shonubi, said banks-branch transactions had dropped by 25 per cent in the last one year, as more customers embrace electronic payment, especially Unstructured Supplementary Service Data (USSD) technology platforms.

    Banking transactions are moving towards zero human interactions, saving cost and time for customers. The USSD is a Global System for Mobile (GSM) communication technology now deployed by banks to offer transfer services to their customers using Android phone.

    Platforms that have taken chunks of banks’ businesses and profitability are: Facebook, Twitter, LinkedIn, My Space, Tumblr, Instagram, Alibaba, Jumia, Konga, Supermart, Amazon, Square, Cellulant, Apple, Google, Visa and MasterCard.

    Companies, such as Uber, Taxify and Airbnb, have developed radical business models that continue to surprise many institutions.

    Secure online payments systems, such as PayPal and mobile payments and transfer solutions, are changing the ways in which payments for goods and services are made.

    These firms are helping consumers to make payments, secure credits, and do things that banks consider impossible. They satisfy customers’ thirst for speed and variety, leaving banks struggling for customer loyalty.

    Technology is rapidly reshaping financial services operations. Banks and FinTech companies have identified a shift in consumer behaviour towards digital channels. Rising acceptance of FinTech start-ups’ services by banks’ customers threatens lenders’ control of market space.

     

  • ‘Banks under pressure to stay profitable’

    Banks are under pressure to not only comply with the ever-changing regulations, but also to modernise their systems and remain profitable as competition with Financial Technology (FinTech) firms thickens, Senior Business Solutions Manager, Pre-Sales Risk Practice, SAS Charles Nyamuzinga, has said.

    He spoke at the SAS Risk & Finance Analytics Roadshow in Lagos.

    He noted that banks  face additional challenges, including risk analytics skills shortages, data management issues and integrating their risk management and finance processes across the enterprise. But, on the positive side, they have started considering technology as a way of eliminating these challenges and have access to new streams of data that are also helping to advance the financial inclusion mandate.

    SAS, a leading global analytics firm, as a technological partner for banking institutions has always played a proactive role in fostering innovation and transformation of processes and systems, from regulatory compliance to strategic decisions support, from digitisation to risk assessment in real-time and also providing analytics solutions allowing banks to adapt more quickly to regulatory changes while minimising costs.

    Recent regulatory changes in the banking industry mean that banks across Africa should already be compliant with the new IFRS 9 accounting standard, which changes the way they calculate expected credit losses.

    There is also the need to start thinking about the new ‘Basel IV’ framework, which impacts on how banks calculate their risk weighted assets and the amount of capital they need to offset those risks.

    Other issues, which banks are  grappling with include incorrect modelling caused by data management and quality issues, skills shortages, drawing data from some disparate systems, credit loss calculations, and risk modelling.

     

  • Money laundering: CBN goes hard on banks

    • Non-compliant bank’s Boards may be removed

    The Central Bank of Nigeria (CBN) and the Office of the Attorney General of the Federation (OAGF) have approved new administrative sanctions regime against banks and their staff who fail to comply with anti-money laundering and terrorist financing regulations.

    The new rule, signed by CBN Director, Financial Policy and Regulations, Kelvin Amugo, requires that where the Board of a financial institution, a director or officer responsible for ensuring anti-money laundering compliance with any relevant provision of these regulations has been penalised in three consecutive examination cycles and the breach continues, the CBN may suspend or remove the Board, director, or officer of that institution.

    The framework released at the weekend also spelt out dissuasive monetary sanctions against Banks and Other Financial Institutions as well as their staff and Boards that fail to comply with the set rules.

    The new rule, the CBN said, is in line with the requirements of the Financial Action Task Force (FATF) Recommendations 35 on effective, proportionate and dissuasive sanctions and the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) 2007 Mutual Evaluation recommendation that Nigeria’s Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) sanctions regime should be reviewed and made to be proportionate and dissuasive.

    The administrative sanctions regime has been gazetted to give it legal effect and ensure compliance with FATF and GIABA requirements. The gazetted regulation was signed by the Attorney-General of the Federation and Minister of Justice, Abubakar Malami.

    The action also aligns with the powers conferred on OAGF by Section 23 (2) (e) of the Money Laundering (Prohibition) and are made  in  furtherance  of  the  Money Laundering (Prohibition) Act, 2011 (as amended) and Central Bank of Nigeria (Anti-Money Laundering and Combating the Financing of Terrorism for Banks and Other Financial Institutions in Nigeria) Regulations, 2013.

    Amugo said the sanctions given to any bank that violates anti-money laundering regulations will depend on how quickly, efficiently and effectively the financial institution or person  concerned  in  its management  brought  the  contravention  to  the attention of the CBN or any other relevant regulatory authority to the crime.

    It will also depend on the degree of co-operation with CBN examiners or other supervisory agency during the examination;  any  remedial  step  taken  when  the  contravention  was  identified, including  disciplinary  action taken against the staff involved, where appropriate, addressing any systemic failure and taking action designed to ensure that similar problem do not arise in the future and the likelihood that the same type of contravention will reoccur where no administrative sanction is imposed  and whether the contravention was admitted or denied.

    The new rule also requires that any bank that fails to establish written AML/CFT policies and procedures will attract N20 million fine; failure to approve the AML/CFT policies and procedures will attract N1 million fine on each member of the board and N20 million for the bank.

    Also, failure to review/update the AML/CFT policies and procedures at least every three years will attract N750,000 fine on the Executive Compliance Officer in the first instance and N750,000 for each year that the contravention continues.

    It will also attract N500,000 on the Chief Compliance Officer in the first instance and N500,000 for each year that the contravention continues and N5million on the bank in the first instance and N1,000,000 for each year that the contravention continues.

    Also, failure by a bank to communicate the AML/CFT programme of the organisation to employees will attract N750,000 fine on the Executive Compliance Officer and N500,000 on the Chief Compliance Officer as well as N10 million on the bank.

    Failure of the Board or its Committee to supervise and ensure the effective implementation of the AML/CFT programme will attract N500,000 on each member of the Board and N10 million on the bank, among other sanctions.

    The regulation requires that the Central Bank of Nigeria (Anti-Money Laundering and Combating the Financing of Terrorism for Banks and Other Financial Institutions in Nigeria) Regulations, 2013 will include administrative sanctions and penalties as listed out under the Schedule to these Regulations. Also, the administrative sanctions will be imposed after the  examination  of  a  financial  institution  and  observance  of contraventions by CBN Examiners or the recommendation of relevant agencies.

    In determining the sanctions to apply, all the circumstances of the case, including the nature and seriousness of the contravention, conduct of the regulated financial institution or person concerned in its management after the contravention, previous record of the financial institution or person concerned, shall be considered.

  • CBN: banks must repay excess charges with interest

    Banks deducting monies illegally from their  customers’ accounts for products and services, will be made to refund such monies with interest, the Central Bank of Nigeria (CBN), has said.

    Its Consumer Complaints Manager, Consumer Protection Department, Fada David, who spoke in Abuja yesterday, said the apex bank’s new stand is coming on the heels of repeated complaints from banks’ customers of excessive charges by their banks for withdrawals from Automated Teller Machine (ATM).

    David said: “The Monetary Policy Circular of the CBN , gives certain guidelines as to how much should be refunded to customers if excess charges are discovered. Part of the punitive measures is that if excess charges are discovered, they are refunded to consumers with interest.”

    He also encouraged customers to read the CBN’s Guide to Bank Charges circular to know those charges that their banks were allowed to charge and the correct amount.

    “Bank customers should consult this document to know how much they are expected to pay for services. When you go through it and in a situation where you see charges that you do not understand, you have the right to write your bank and get them to explain what the charges are,” he said.

    He added that “in a situation where it is clear that the customer was charged excessively, the customer should get them to reverse it. You have the right to know how much you are charged from operating your account and make sure that the bank only charges the specified amount,” he said.

    Also, Mr Oludamola Atanda of the Consumer Education Division, Consumer Protection Department at CBN, urged customers to demand for their monthly statement of account. This he said would help customers to monitor their accounts closely.

    Atanda noted that bank customers “have the right to demand for the right product and services. The banks cannot force you to go for a specific product or loan facility.”

     

    You have the right to choose. If they give you a product you do not like, you do not have to take it. Its important for us to understand this.

    “There is also the issue of right to privacy. My bank should not share my details with just anybody. For instance, a wife cannot come and say she wants details of her husband’s account.

    “Only by court order can an account details by revealed to a third party”.

    Atanda said at times, customers complain about certain bank products because they were not properly informed about the products.

    “If I am taking a product, my bank has the responsibility to educate me on that product.

    “If it is a savings product, a customer should know how it works, how many times to withdraw in a month, how much interest to expect and the minimum deposit on the account.

    “We are saying that you have the right to demand good service. Those are the things we want to let customers know,” he said.

    In recent times across the Federal Capital Territory (FCT), bank customers have lamented that they now dreaded making withdrawals using other banks’ ATMs because of the continued charge of N65 for every transaction.

    The customers complained that most banks within the city centre have rigged their ATMs to dispense only N10,000 or less per transaction, thus ripping off customers withdrawing more than that amount.

    The customers complained that if they had to withdraw N100,000 or more through other banks ATM, it meant they would lose so much money.

    They, however, called on the CBN and other relevant authorities to look into the matter so as to help poor Nigerians.

     

  • NSE sanctions six more banks over financial reports

    The Nigerian Stock Exchange (NSE) has sanctioned  more companies for failing to meet the deadline for the submission of their audited report and accounts for last year.

    A report obtained by The Nation indicated that FBN Holdings Plc – the holding company for FirstBank of Nigeria and its former subsidiaries – will pay N2.1 million fine for the duration of its delay, Fidelity Bank Plc, which just released its results last week, N2.7million, Sovereign Trust Insurance Plc, N2.1 million, while Meyer Plc N2.1 million.

    The Exchange also imposed sanctions on Presco and Sterling Bank, which were earlier found liable for the same act. Presco will pay N1 million fine for failing to submit its audited report within the deadline and another N300,000 for failing to submit its first quarter results for 2018. Sterling will pay another N1.3 million fine for the delay of its 2017 audited financial statements.

    The Nation had earlier reported exclusively that the Exchange  sanctioned seven companies and reserved the penalty of  32 others, which sanctions were undergoing administrative review to determine what they will pay.

    The sanctioned companies included Vitafoam Nigeria, N800,000; Academy Press, N35 million; International Breweries, N100,000; First City Monument Bank (FCMB) Group, N100,000; Abbey Mortgage Bank, N700,000 and Wema Bank, N800,000.

    Post-listing rules at the NSE require quoted companies to submit their audited earnings reports, not later than three months or 90 calendar days after the expiration of the period. The deadline for submission of annual report for companies with Gregorian calendar business year ended December 31, 2017 was March 31.

    Under the rules at the Exchange, late submission under the first instance of 90 days could attract N9 million, the additional period of 90 days will attract N18 million while such delay beyond the first 180 days to the next 180 days could attract as much as N72 million, bringing fines payable by a defaulting company within a year to N99 million.

    A late submission attracts a fine of N100,000 per day for the first 90 calendar days of non-compliance, another N200,000 per day for the next 90 calendar days and a fine of N400,000 per day thereafter until the date of submission.

    For the 2016 business year, companies paid more than N400 million as fines for late submission of accounts. The Nation’s check indicated that fines for the default filings for the 2017 business year may exceed N500 million.

    Companies that had been marked  for sanctions include Nigerian German Chemical, Roads Nigeria, Afromedia, AG Leventis Nigeria, African Alliance Insurance, Cornerstone Insurance, Diamond Bank, Fortis Microfinance Bank, Great Nigeria Insurance and Linkage Assurance.

    Also on the list were Morison Industries, Multiverse Mining and Exploration, Mutual Benefits Assurance, Niger Insurance, Oando, Omoluabi Mortgage Bank, RT Briscoe, Royal Exchange, Skye Bank, Staco, Standard Alliance, Sunu Assurances Nigeria-formerly Equity Assurance, Union Bank of Nigeria, Unity Bank, VeritasKapital Assurance and Universal Insurance Company.

    The Exchange started implementation of the rules on submission of periodic reports and results and the enhanced sanction regime on January 1, last year. Under the rules, quoted companies are required to file their unaudited quarterly accounts with the NSE not later than 30 calendar days after the relevant quarter, and publish it within five business days after the date of filing, in at least two national daily newspapers, and post it on the company’s website, with the web address disclosed in the newspaper publication.

     

    Also, an electronic copy of the publication shall be filed with the Exchange on the same day as the newspaper publication.

    Where the company chooses to audit its quarterly accounts, it is required to file such accounts not later than 60 calendar days after the relevant quarter, and publish it within five business days after the date of filing, in at least two national daily newspapers and post it on the company’s website, with the web address disclosed in the newspaper publications. Such a company will also be required to file electronic copy of the publication with the Exchange on the same day as the newspaper publication.

    For annual audited accounts, companies are required to file their audited annual report and accounts with the Exchange not later than 90 calendar days after the relevant year end, and published in at least two national daily newspapers not later than 21 calendar days before the date of the annual general meeting, and posted same on the company’s website with the web address disclosed in the newspaper publications. Also, an electronic copy of the publication shall be filed with the Exchange on the same day as the publication.

    Besides, a defaulting company will be tagged with the “Below Listing Standard” (BLS) or any other sign or expression to indicate that the company has failed to submit its accounts within the stipulated period and this tag shall remain for as long as the company fails to file its accounts.

    Where a company fails to file its accounts after the expiration of the first 90 days, the NSE will send such a company a “second filing deficiency notification” within two business days after the end of the first 90 days. In addition, the Exchange will suspend trading in the company’s shares and notify the Securities and Exchange Commission (SEC) and the market within 24 hours of the suspension.

    In a more rigourous naming and shaming practice, such a company is expected to within three business days of receipt of the second filing deficiency notification and suspension of trading in its securities, to inform the Exchange in writing of the status of the accounts, and issue a press release, of not less than half a page, in at least two national daily newspapers, with the company’s web address indicated in the newspaper publication, and posted on the company’s website disclosing the status of the relevant accounts, reason for the delay in submission, and the anticipated filing date. An electronic copy of the publication shall be filed with the Exchange on the same day as the publication. The suspension of trading in the company’s shares shall only be lifted upon submission of the relevant accounts in line with the requirements of the NSE.

    Any company that fails to publish accounts in two national daily newspapers as required, or fails to provide proof of publication, and for each instance of non-compliance with any directives of the Exchange, shall also be required to pay a fine of 50 per cent of its annual listing fee and a fine of N25,000 for every day the company remains in default.

    Where a company fails to also file its accounts after the second additional period of 90 days, bringing the default days to 180, days, the Exchange may take further appropriate actions including cautioning shareholders that the company’s listing is under threat of delisting and eventual delisting.

    The rules also empower the Exchange to delist a company within the first 90 days where the NSE determines that granting extended period is not necessary, especially where there are proven issues of financial fraud, gross corporate governance abuses and other illegalities.

    Under the rules, all accounts, circulars, and press releases to be published pursuant to the rules shall require the Exchange’s prior approval, and shall cover a minimum space of half a page per newspaper publication.

    However, the new rules make provisions for companies that require extended period to complete, audit or get regulatory approval for their accounts. The new rules grant the Exchange the powers to grant waivers and extension to companies based on the peculiarities of each company upon request by such company. A company that requires regulatory approval of a primary regulatory agency, like the Central Bank of Nigeria (CBN) for banks, must however have filed its account with the primary regulator not later than 30 calendar days before the earnings submission deadline for audited annual accounts and 14 calendar days for quarterly accounts.

    A defaulting company shall be required to pay the fines notwithstanding remedial action taken after the earnings submission deadline. According to the rules, notwithstanding that a company takes the required steps during the cure periods or later complies with the provisions of the rules, any company that defaults in filing its accounts within the stipulated periods shall be liable to pay the applicable penalties stated above, except the affected company had received waiver or extension of time by the Exchange.

     

     

  • Banks missing in FinTech, e-banking awards list

    No Nigerian lender was   shortlisted for home grown innovations in financial-technology and electronic banking at this year’s The African Banker Awards.

    The country, however, has nominations in six categories of the award.

    This development knocked the country out of the Award for Innovation in Banking category and three others which include Award for Financial Inclusion, Best Retail Bank in Africa, and the Deal of the Year – Equity.

    This is contained in a statement to herald the awards scheduled for the Annual Meetings of the African Development Bank (AfDB) in Busan, South Korea.

    This year’s shortlist sees another strong year for banks from Morocco and Kenya keenly contesting with Nigeria for most of the categories.

    Segun Agbaje of Guaranty Trust Bank (GTBank), was shortlisted under the Banker of the Year category where he would have to slug it out with Mohamed El Kettani – Attijariwafa Bank, Morocco; James Mwangi – Equity Group Holdings Plc, Kenya; and Joshua Oigara – KCB, Kenya.

     

  • ‘Real sector funding to drive competition among banks’

    The ability to support risk asset creation in the real sector will differentiate winners from losers in the Nigerian banking industry over the next three years, report Coronation Research (a part of Coronation Merchant Bank Group), has shown.

    While the quality of asset in the industry is generally improving, the firm believes the best capitalized banks will move well ahead of their competitors. According to the Head of Research, Guy Czartoryski, “for two years, Nigerian banks have had an easy time, earning good income on risk-free government-backed, Naira-denominated securities. That era is drawing to a close as T-bill rates fall. Asset yields are trending south, and it is almost impossible to re-price liabilities to match. So, banks must either find other sources of income or face an average 15 per cent drop in their Profits Before Tax expectation for 2018. For the banks to replace the portion of income threatened by declining yields on securities, they must grow risk-weighted assets. This means a 6-12 per cent rise in customer loans in 2018.”

    The report categorizes banks into three tiers; Group A, Group B and Group C. Banks in Group A, being the most well capitalized, have the biggest opportunity to increase consumer lending. According to the report, Group A includes Zenith Bank, GT Bank and Stanbic IBTC, which have the ability to significantly expand their loan books by 69 per cent, 82 per cent and 182 per cent respectively.

    Group B, including UBA, Access Bank and Fidelity Bank, have moderate capital levels and some ability to expand loans books but may also pursue tier II capital raise in the form of long-term subordinated debt. Group C, including FBNH, Diamond Bank and Sterling Bank, in the short to medium term have limited ability to expand their loans books and will most likely focus on dealing with capital issues and might attempt to raise long term capital from the capital market.

  • ‘Digital technology major challenge for banks’

    Leading global professional services firm that provides a  range of services and solutions in strategy, consulting, digital, technology and operations, Accenture, has identified keeping up with the changes in digital technology as a major challenge for the banking industry.

    It added that consumer expectations and government regulations are other challenges facing the sector.

    Accenture Nigeria’s Managing Director, Financial Services, Toluleke Adenmosun, who spoke in Lagos about the opening of entries for Accenture Innovation Index 2018, said Accenture has received a significant number of requests from banks asking for greater insight and assistance on innovation in the first few months of 2016.

    She said with a rapidly evolving ecosystem, banks must make innovation a part of their culture and rotate to the new.

    She said: “The banking industry is evolving right now requiring banks to navigate through significant challenges to not only maintain their profitability but to also increase their revenue and meet the customers’ dynamic demands.

    ‘’The topic of “Innovation” is a critical discussion among the Banking C-Suites now, as banks are being pushed to think about innovation in new ways that were unimaginable just a decade ago.

    “We believe the biggest challenge banking in Nigeria is facing is keeping up with the changes in digital technology, consumer expectations and government regulations. Accenture has received a significant number of requests from banks asking for greater insight and assistance on innovation in the first few months of 2016. And with a rapidly evolving ecosystem, banks must make innovation a part of their culture and rotate to the new.”

    Accenture said the rapid changes in the world are increasingly rewarding those who are innovating. Adoption of new ways of doing things is driving growth in companies, expanding opportunities in economies and increasing the quality of life in nations that embrace it. The outliers in innovation and those who are improving their position have some things common – they bolster their innovation capacities through positive-sum policies such as investments in Research & Development, education, tax incentives for innovation that contribute positively to the global body of knowledge and stock of innovation.

    In partnership with The Lagos Business School and select C-Suites from tier one companies who are judges in the process, Accenture applies best practice research approaches to provide a confidential customised innovation diagnostic report that identifies each participant’s innovation strengths and weaknesses; benchmarks their innovation within their industries; and presents strategies that may help them gain competitive advantage.

    The Accenture Innovation Index 2018 will survey nearly 100 companies in banking and Fintech space – this will include interactions with these executives. This year’s index will focus on banking and the Fintech industry that is driving an increasing number of solutions to customers in the financial services space. As companies in this space are pressured to innovative and create new products and services, their impact is shaping people’s lives and contributing to the improvement of living standards in the country. In subsequent editions other industries and their impact will be indexed to give an even broader view of the various industries strengths and the nation’s most advantageous attributes.

    “We look forward to sharing the report and its findings with you once the process is completed; we are excited to see how our industry leaders compare with peers in other countries where we have conducted the survey,” Accenture added

  • Why banks don’t fund aviation infrastructure, by ICAO

    Financial institutions are not funding aviation infrastructure in many African countries, including Nigeria, because of the risks, the International Civil Aviation Organisation (ICAO) has said, its President, Dr Bernard Olumuyiwa Aliu has said.

    He said countries with limited access to investment finances must ensure that critical airport infrastructure needs were included in the priority list of international public finance and assistance for development projects.

    Speaking on the sideline of the 59th Airports Council International (ACI), African Regional Conference in Lagos, he said no financial investor in airport infrastructure was willing to commit funds, where there was policy somersault in regime change.

    He said global investors were seeking stable policy, regulatory and enabling environment where there is fidelity with agreements on airport infrastructure funding and the tenure of such projects for the investor to recoup his money.

    Aliu said: “No investor or financial institution wants to project their proposed returns based on eventuality, only to see those goal posts being moved by a government half-way through a project after they have made their financial commitment.”

    He said until issues of uncertainties about investment in aviation infrastructure were resolved, African countries  must work out models that are sustainable in closing the gap in airport facilities.

    He said:” The priority is for airport operators, in coordination with states, to demonstrate where financing is required. This can be accomplished through gap-analyses of forecast demand, future capacity need and current infrastructure deficiencies.”

    He called on African countries to look beyond cost recovery measures in the management of airports terminals, by considering other ways of enhancing revenue, other than flight activities.

    The ICAO chief said revenue from passenger charges and taxes were significantly outweighed by what a state would lose out in terms of more broad-based economic growth as a result of the dampened demand for air travel and air cargo shipments which these charges lead to.

    Aliu said: “It is, therefore, important to seek to complement aeronautical charges with a variety of non- aeronautical revenue.”

    He said many financial institutions in Nigeria have shunned investing in the country’s aviation sector because of frequent changes in government policies.

    Inconsistent government policy, he said, had served as a disincentive to many investment in airport infrastructure and loss of money, by a few investors, who dared.

    Besides, aviation, he said remained a catalyst for sustainable social, economic and human development, directly and indirectly supporting 6.8 million jobs and generating $72.5 billion in Gross Domestic Product (GDP).