The Nation Newspaper

Tag: FinTechs

  • Local fintechs finally winning the trust battle?

    Local fintechs finally winning the trust battle?

    • By Emma Nwachukwu

    Sir: In recent times, growing concerns over the stability, transparency, and regulatory compliance of some major fintech players in Nigeria have left many users uneasy about where to entrust their hard-earned money. Reports of account restrictions, regulatory warning, and alleged misuse of platforms have stirred debate about fintech accountability.

    While fintechs like OPay and PalmPay have propelled Nigeria toward digital payments adoption, several red flags have been raised and serious questions about Regulatory Non-Compliance & Penalties, ownership and foreign influence, and user worries over safety of deposits have equally arisen.

    Recent concerns raised about the practices of some big players, especially those with majority foreign ownership, have reminded users that financial technology isn’t just about flashy apps and convenience. It is about the safety of deposits, the transparency of operations, and the assurance that when customers need access to their money, there are no surprises. This is where Nigerian-owned fintechs are quietly stepping forward, reshaping the narrative of what trustworthy digital banking should look like.

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    Brands like PiggyVest, Moniepoint, and the fast-rising Bankit reflect this shift. They embody a home-grown commitment to accountability and accessibility, being deeply rooted in Nigeria’s regulatory framework and operating under the watchful eye of the Central Bank of Nigeria and the Nigeria Deposit Insurance Corporation. For users, this means peace of mind: knowing that deposits are not just numbers in an app but are insured, protected, and backed by local regulation.

    The industry’s trajectory is clear: Nigerians are beginning to prioritize trust and long-term reliability over marketing blitz or foreign prestige. They want digital banks that don’t just promise convenience but deliver it consistently without compromising safety. PiggyVest continues to stand out for its disciplined savings culture, Moniepoint has earned its place in supporting small businesses across the country, and Bankit is emerging as a model for everyday consumers who want stress-free, transparent digital banking that aligns with local realities. 

    Nigeria needs fintechs that scale without sacrificing safety, transparency, and trust. Our locally and wholly owned local alternatives including the fastest rising ones like Bankit offers all that: Nigerian ownership, regulatory compliance, clear user value, and a roadmap of innovation.

    In a landscape where other providers are facing fines, public scrutiny, or ownership ambiguity, our Nigerian fintech brands are well-poised to be the go-to option for anyone who wants modern fintech service and peace of mind. 

    •Emma Nwachukwu,

    Lagos.

  • Worries over fintech-driven fraud cases

    Worries over fintech-driven fraud cases

    The rise of fintechs in Nigeria has been accompanied by a significant increase in fraud cases within the payment space, according to findings at the weekend.

    Money lost to fraud in Nigeria’s banking system has nearly tripled over the past five years, according to an analysis released by the Nigeria Inter-Bank Settlement System (NIBSS).

    According to the Financial Institutions Training Centre (FITC), 11,532 fraud cases were reported in second quarter 2024, up from 11,472 in first quarter 2024

    Although the number of fraud cases only increased slightly, the cash involved in these cases increased astronomically; N2.9 billion was lost in the first quarter of the year, rising to N56.3 billion in the second quarter.

    Meanwhile, the cash lost to fraud rose from N468.49 million in first quarter 2024 to N42.6 billion in second quarter 2024.

    According to NIBSS estimate, N52.3 billion was lost to fraud in 2024, compared to 11.6 billion in 2020.

    The report also indicated that fraudsters illegally attempted to obtain N86.4 billion in 2024.

    These figures, the agency said, were reported shortly after the latest GDP statistics showed a fourth-quarter growth of 3.8 per cent, the highest rate in three years, primarily fuelled by the services sector, which includes finance and insurance.

    Nigeria’s digital payments system is considered one of the strongest in Africa, and tech startups in the nation secured approximately $400 million in funding last year.

    Such financial services have gained greater significance recently due to a cash shortage and currency reforms, which have driven more users to abandon physical banknotes.

     “The amount lost to fraud has increased over the past five years along with the growth of financial transactions in the digital payments sector,” NIBSS stated.

    Reports indicated that fraudsters are employing various tactics, including the conversion of funds into gift cards and the establishment of accounts using the stolen identities of elderly individuals, minors, and foreigners.

    The report suggested that N400 million had been deposited into accounts created with the stolen identities of senior citizens.

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    NIBSS noted that some funds have been retrieved, and bank employees involved in the fraud are under investigation.

    Nigeria is classified as a “grey list country” by international watchdogs, alongside nations such as South Sudan, Bulgaria, Monaco, and Croatia, due to weaknesses in its measures against money laundering and financing terrorism.

    Nigeria’s fintech sector has experienced rapid growth in recent years, driven by an increasing demand for digital financial services. However, this boom has also attracted the attention of fraudsters seeking to exploit vulnerabilities within the system.

    The risk of fraud has become a significant concern, not just for fintech companies but for the entire financial services industry in the country.

    The Cyber Security Experts Association of Nigeria (CSEAN) has warned of heightened cybersecurity risks this year, including cryptocurrency scams and artificial intelligence (AI)-driven cyberattacks. These threats, it said are expected to exploit trust and manipulate public perception, posing severe risks to individuals and businesses.

    AI-powered attacks, such as deepfakes and social engineering tactics, are becoming more sophisticated, targeting financial institutions and unsuspecting individuals, CESAN warned.

    Payments unicorn, Flutterwave lost N11 billion to a security breach earlier in 2024. The year before, it lost $24 million to unauthorised point of sale (PoS) transactions. Similarly, Interswitch incurred losses of N30 billion after a glitch allowed merchants to file and receive chargebacks.

    Beyond the financial losses suffered by fintechs and customers, the increase in fintech fraud has also affected trust business relationships.

    Fidelity Bank once restricted transfers to neobanks such as Moniepoint, OPay, and PalmPay due to concerns about their KYC processes. Wema Bank also removed seven fintechs from its payment gateway because of fraudulent activity. It had earlier lost N685 million in 2023 to fraud and forgery.

    The fintech sector in Nigeria has expanded rapidly, driven by increasing demand for digital financial services. This growth has contributed to financial inclusion, making financial services more accessible to the unbanked and underbanked populations.

    The sector is leveraging technologies like blockchain and AI to enhance transaction efficiency and security. However, these advancements also present new challenges in terms of regulatory frameworks and cybersecurity.

    The Nigerian Communications Commission (NCC) has acknowledged the rise in fraud cases and has hinted on collaborative efforts with the Central Bank of Nigeria (CBN) to design a robust framework.

    Its Executive Vice-Chairman and Chief Executive Officer (EVC/CEO), Dr. Aminu Maida, said: “The NCC is collaborating with the CBN to develop a robust framework to combat frauds in mobile financial services.”

    He said the solution would be deployed to tackle the increasing problem of frauds in mobile financial services in the Nigerian banking and financial industry as mobile channels is fast becoming primary mode for banking.

    He said such a regulatory framework has become essential with mobile channels becoming the primary mode for banking in the country, whether through banks’ mobile apps, or Mobile Network Operators’ (MNOs) Unstructured Supplementary Service Data (USSD) code for millions of their customers in the e-payments ecosystem.

    “The majority of financial services are accessed via mobile, which ties back to the phone numbers used for these transactions,” he said.

    According to him, the Commission has acknowledged that “the current system lacks effective consequences for phone numbers involved in fraudulent activities and stressed the need for stronger enforcement measures.”

    Common fraud tactics in the e-payment space include phishing, account takeovers, and synthetic identity fraud, often targeting digital wallets and bank transfers. The irreversible nature of instant payment systems makes them particularly vulnerable.

    Fintechs face significant operational challenges due to fraud, with 72per cent identifying it as a top concern. Solutions such as real-time transaction monitoring and user identity verification are however being developed to combat these threats.

    The CBN and other regulatory bodies are implementing reforms to enhance security and stability in the fintech sector. These include stricter compliance measures and the introduction of crypto taxation laws by the Security and Exchange Commission (SEC).

    Similarly, the integration of AI and blockchain is expected to continue, offering potential solutions to fraud while driving further innovation and investment in the sector.

    Overall, while fintechs offer immense potential for financial inclusion and economic growth in Nigeria, addressing the rising fraud cases remained a critical challenge that requires both technological innovation and robust regulatory oversight.

  • How big Fintechs are gaining edge with zone’s regulated blockchain payment network

    How big Fintechs are gaining edge with zone’s regulated blockchain payment network

    Nigeria’s financial services industry has undergone a remarkable transformation, marked by decades of innovation that have reshaped how payments are made and managed. 

    Today, the country boasts one of the most advanced payment infrastructures in the world, processing more real-time payments than many developed nations. This evolution has been driven by an unrelenting commitment to innovation, by commercial banks, fintech companies and regulatory bodies.

    As Nigeria’s payment ecosystem continues to evolve, fintechs are searching for the next big differentiator to stay ahead in an increasingly competitive landscape. For a growing number of them, Zone, a regulated blockchain-powered payment network that has introduced unprecedented reliability, scalability, and compliance to the industry is that differentiator.

    The journey of Nigeria’s payment sector can be traced back to the early 2000s when banks, alongside companies like Interswitch, eTranzact, SystemSpecs, Remita, Appzone, Paga, Softcom, and NIBSS, laid the foundation for digital payments.

     NIBSS, a cornerstone of Nigeria’s financial infrastructure, was established by banks in collaboration with the CBN, exemplifying the collective effort to drive innovation and create a robust payment ecosystem.

     These pioneers introduced critical infrastructure for payment switching, core banking systems and digital processing that enabled financial institutions to digitize operations and bring millions of Nigerians into the financial system.

     By the 2010s, a new wave of fintechs emerged, building on this foundation and pushing the boundaries of innovation. Companies like Paystack, Flutterwave, PiggyVest, Cowrywise, and Eyowo brought new solutions to market, ranging from simplified payment gateways to wealth management and personal savings platforms. These Gen II fintechs redefined user experiences, driving adoption and expanding access to financial services across Nigeria.

       Despite the competitive pressures, one consistent theme has been the ability of fintechs in every era to identify and adopt game-changing technologies. Whether building in-house or partnering with innovators, these companies have consistently leveraged technology to gain an edge, setting the stage for the next era of digital payments in Nigeria.

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      Nigeria’s payment infrastructure is recognised globally for its innovation, with milestones like NIBSS Instant Payments (NIP), which introduced real-time interbank transactions in 2011 and the CBN’s launch of the eNaira, Africa’s first digital currency. These advancements have propelled the financial system forward, setting a benchmark for innovation.

       Today, transformative technologies like blockchain and artificial intelligence (AI) are reshaping financial services. Globally, institutions like JPMorgan Chase and Visa are pioneering blockchain-powered platforms and AI tools are improving customer experiences at firms like Citibank and Revolut.

       Few companies in Africa are leveraging these technologies at scale and even fewer in a regulated environment. Zone combines decentralization with strict compliance, enabling financial institutions adopt cutting-edge technology without compromising security or transparency. By addressing issues like transaction failures and inefficiencies in settlement, Nigeria’s payment ecosystem stays ahead.

       As blockchain and AI continue to shape the future of global finance, Nigeria is poised to remain a leader in financial services, building a resilient, future-ready ecosystem.

       This foremost blockchain-powered payment network’s entry into the payment landscape has been nothing short of transformative. As Africa’s first regulated blockchain network for payments, it offers financial institutions a decentralised infrastructure tailored for reliability and compliance. Since securing a switching and processing license from the CBN in 2022, the company has grown rapidly, onboarding major financial institutions such as Gtbank, UBA, First Bank, Zenith Bank and Union Bank to process transactions on its network.

      Its standout product, ZonePOS, is a game-changer for POS-based payments. Built on its blockchain infrastructure, the POS addresses persistent issues such as transaction failures, chargebacks, and fraud. By offering direct card routing and same-day settlements, it provides financial institutions and merchants with a seamless payment experience. Its adopters have reported higher transaction success rates and significantly reduced operational costs, setting a new benchmark for POS reliability in Nigeria.

      Behind the scenes, whispers are growing as fintechs scramble to integrate with the POS, recognising the competitive edge it offers in an increasingly crowded market.

      The company’s achievements have been underpinned by its close alignment with Nigeria’s regulatory framework. Through its partnership with the Nigeria Inter-Bank Settlement System (NIBSS), it performs Payment Terminal Service Aggregator (PTSA) functions directly on its blockchain network. This partnership integrates NIBSS’s oversight role into Zone’s decentralized framework, streamlining compliance for financial institutions while enhancing payment transparency and reliability.

      CBN’s support for its blockchain-powered payment network exemplifies how innovation and regulation can work in harmony. By embedding compliance into its core architecture, how blockchain technology can serve as a reliable partner for traditional financial systems has been redefined.

       As Nigeria’s fintech ecosystem continues to grow, this blockchain network is becoming a critical enabler of success for forward-thinking financial institutions. Its ability to combine cutting-edge technology with robust regulatory compliance has set a new standard for digital payments in the country.

       With an expanding client base, onboarding of major financial institutions and commitment to innovation, the company is positioned as a trailblazer in Nigeria’s financial services sector.      As more fintechs and banks join, it is poised to redefine what’s possible for payments in Nigeria, offering a model that could inspire similar innovations across Africa and beyond.

  • Zone expands decentralised payment network with leading Fintechs

    Zone expands decentralised payment network with leading Fintechs

    Africa’s fastest-growing payment infrastructure company, Zone, has announced that three prominent Fintechs across diverse verticals of the payments industry, have joined other leading banks and fintechs on its decentralised payment network. 

     Baxi by Onafriq, a leading payment service provider; FairMoneyMicrofinance Bank and KongaPay, a licensed mobile money operator known for its seamless and secure payment solutions are now part of Zone’s expanding ecosystem. 

    This development follows Zone’s recent launch of its decentralised PoS Payment Gateway product, ZonePOS and the strategic partnership with Nigeria Inter-Bank Settlement System (NIBSS) Plc to decentralise Payment Terminal Service Aggregator (PTSA) functions using Blockchain Technology.

     This development builds upon the recent onboarding of some of Africa’s largest and most prominent financial institutions, First Bank, UBA, and Zenith Bank, to Zone’s regulated blockchain network. 

    The addition of Baxi, FairMoney and KongaPay demonstrates the applicability and appeal of Zone’s technology across various segments of the financial services industry.

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    Zone secured a payment switching and processing license from the Central Bank of Nigeria (CBN) in 2022, making its payment infrastructure Africa’s first regulated blockchain network for payments. By integrating with Zone’s regulated blockchain network, Baxi, FairMoney and KongaPay will significantly enhance their payment processing capabilities, benefiting from first, direct transaction routing by eliminating intermediaries and reducing failure points, resulting in faster, more reliable, and more scalable transaction processing at lower costs.

     Also, end to end transparency by providing automatic reconciliation, which eliminates chargebacks and prevents chargeback fraud.

    Finally, same day settlement by delivering quicker value for successful transactions to financial institutions and their customers.

    Obi Emetarom, CEO and co-founder of Zone, commented on the announcement saying, “We are excited to welcome Baxi, FairMoney and KongaPay to our network. Their integration is an important step in our journey to advance the payment landscape in Africa and beyond. It underscores the growing trust in our technology and its ability to deliver on our promise of reliable, frictionless, and universally interoperable payment experiences across various financial service verticals. As we continue to expand and enhance our payment network, we remain committed to connecting every monetary store of value and enabling a truly inclusive financial ecosystem.”

        This expansion of Zone’s network, coupled with its recent partnership with NIBSS to enhance Payment Terminal Service Aggregator (PTSA) operations using blockchain technology, demonstrates the growing acceptance and transformative potential of regulated blockchain in mainstream finance. It sets a new standard for payment processing in Nigeria and potentially across Africa and other emerging markets, promising improved customer experiences and operational efficiency, along with reduced transaction costs, and enhanced financial inclusion.

  • Stricter regulations to deepen fintechs, banks collaboration

    Stricter regulations to deepen fintechs, banks collaboration

    Stricter regulatory regime by the Central Bank of Nigeria (CBN) is expected to birth a new era of deepened collaboration among deposit money banks (DMBs) and financial technology companies (fintechs).

    A report prepared by Stears predicted the emergence of a new era of collaboration and innovation, driven not only by upcoming stringent regulations on fintechs but the high costs associated with payment infrastructure development across the country.

    The report noted that fintechs have come under increased scrutiny and compliance measures, necessitating a re-evaluation of their operational strategies. This regulatory shift, coupled with the high costs associated with infrastructure development, has paved the way for significant involvement in the banking-fintech ecosystem.

    Against this backdrop, the analysis sees a notable increase in opportunities for banks to lend their infrastructure to fintechs. The collaborative approach, borne out of regulatory challenges and cost considerations, is expected to foster a more symbiotic relationship between traditional banks and fintech innovators.

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    Financial Analyst, Stears, Bolatito Bickersteth, said:  “These financial and regulatory hurdles catalyse a novel era of collaboration between traditional banks and fintechs. The strategic partnership between these sectors is poised to be a game-changer, providing fintechs with crucial support to navigate regulatory challenges and infrastructure costs while enabling banks to tap into cutting-edge technological innovations. Overall, consumers are poised to benefit from the product innovation these collaborations would birth.”

    Further, as banks navigate the impact of the tough operating environment on their books this year and seek to attract low-cost deposits, the report sees potential in collaborations with small and medium-sized enterprises (SMEs) and tapping into the huge unbanked population.

    The report pushes for a strategic collaborative approach, urging banks to leverage their established infrastructure and extensive networks to tap into the offline payment market and increase collaboration with SMEs. In doing so, banks will address the needs of the unbanked and the funding needs of SMEs and will also be catalysts for economic growth and national development.

    The report expects the CBN to keep up with its tightening policy in the near term to address the inflationary pressures effectively.

    Immediate action on dollar illiquidity is, therefore, very crucial for achieving comprehensive inflation management.

    The report underscored the importance of strategic interventions to enhance liquidity and stabilise the exchange rate.

    Senior Economist, Stears, Dumebi Oluwole, said:  “The elimination of petrol subsidies has significantly heightened the cost of living for consumers. The resultant surge in fuel prices has set off a chain reaction, escalating transportation expenses and contributing to an overall uptick in inflation.

    “This, coupled with the devaluation of the naira, has led to elevated import costs, particularly in the context of persistent foreign exchange scarcity. The shortage of foreign exchange has precipitated higher exchange rates, adversely affecting businesses reliant on imported goods and services. The cumulative effect is complicating the economic landscape, adding layers to the challenges faced by both consumers and businesses.”

    In the longer term, the report stressed the imperative for a holistic approach, adding that a sustained effort in addressing structural challenges that contribute to inflationary pressures must be tackled headlong.

    The report highlighted the need for collaborative initiatives between the government, regulatory bodies, and private sector to foster sustainable economic growth.

    Head of Insights at Stears, Fadekemi Abiru, said: “We understand the complexity of the economic landscape in Nigeria, and our 2024 African Outlook Report aims to provide valuable insights to policymakers, investors, and businesses navigating these challenging times.

    “Our projections and recommendations are rooted in a thorough analysis of the current economic conditions, and we believe that a combination of short-term measures and long-term strategies will be instrumental in steering Nigeria towards a path of resilience and growth.”

    The report provided valuable insights for industry stakeholders, policymakers, and investors seeking to navigate the evolving dynamics of Africa’s fintech sector. The analysis highlights challenges and serves as a call to action for collaborative efforts to foster resilience and sustainability within the sector.

  • Fintechs, start-ups may face capital drought, says report

    Fintechs, start-ups may face capital drought, says report

    Nigeria’s fintech and start-up sector will face threat this year as they are expected to contend with drought in capital pools, exodus in foreign direct investments (FDI) and inability to secure follow-on-rounds or seed capital.

    Stears, an economic analysis and data-driven insights provider, in its 2024 African Outlook Report released at the weekend, noted that responding to rising global interest rates and naira depreciation, investors have taken a cautious stance, resulting in a notable 76 per cent dip in fintech funding between 2022 and 2023.

    The outlook noted a shift as investors prioritise profitability over the previous trend of ‘growth at all costs’.

    The report, however, noted that opportunities emerge on the back of a crisis, adding that lenders, paytechs and financial infrastructure companies must face the challenge of delivering best-in-class services to their end users while optimising costs. Many are adapting their playbooks to survive the new status quo and spot new opportunities to create customer value.

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    Senior Fintech Analyst, Stears, Nchedolisa Akuma, said: “Cost-cutting will be foremost for founders. In the extreme, we’d see this playout as more closures and layoffs. But it would also spur welcome trends like focusing on profitable segments, operational efficiencies, and rethinking ambitious, overly hasty market expansion to keep investors happy.”

    Shedding light on Nigeria’s macroeconomic landscape, the report stated that Nigeria is grappling with a formidable challenge of a high headline inflation rate, put at 28.2 per cent.

    It projected an average yearly inflation rate ranging from between 27.59 per cent and 31.85 per cent for the year, signalling the need for proactive measures to safeguard the nation’s economic stability. The report expected the Central Bank of Nigeria (CBN) to continue with its tightening policy in the near term to address the inflationary pressures effectively.

    Immediate action on dollar illiquidity is deemed crucial for achieving comprehensive inflation management, it further added.

    The report underscored the importance of strategic interventions to enhance liquidity and stabilise the exchange rate.

    Senior Economist, Stears, Dumebi Oluwole, said:  “The elimination of petrol subsidies has significantly heightened the cost of living for consumers. The resultant surge in fuel prices has set off a chain reaction, escalating transportation expenses and contributing to an overall uptick in inflation.

     “This, coupled with the devaluation of the naira, has led to elevated import costs, particularly in the context of persistent foreign exchange scarcity.The shortage of foreign exchange has precipitated higher exchange rates, adversely affecting businesses reliant on imported goods and services. The cumulative effect is complicating the economic landscape, adding layers to the challenges faced by consumers and businesses.”

    In the longer term, Stears emphasises the imperative for a holistic approach, calling for sustained efforts in addressing structural challenges that contribute to inflationary pressures. The report highlighted the need for collaborative initiatives between the government, regulatory bodies, and private sectors to foster sustainable economic growth.

    Also commenting on the report, Head of Insights at Stears, Fadekemi Abiru, said: “We understand the complexity of the economic landscape in Nigeria, and our 2024 African Outlook Report aims to provide valuable insights to policymakers, investors, and businesses navigating these challenging times.

    “Our projections and recommendations are rooted in a thorough analysis of the current economic conditions, and we believe that a combination of short-term measures and long-term strategies will be instrumental in steering Nigeria towards a path of resilience and growth.”

    The Report provides valuable insights for industry stakeholders, policymakers, and investors seeking to navigate the evolving dynamics of Africa’s fintech sector. The analysis highlights challenges and serves as a call to action for collaborative efforts to foster resilience and sustainability within the sector.

  • Fintechs quicken agency banking spread to grassroots

    Fintechs quicken agency banking spread to grassroots

    Fintechs have revolutionised Nigeria’s financial services sector in ways that have caused economy growth in the last decade. Rural dwellers are top beneficiaries of the agency banking model which is saving cost and resources for operating financial institutions but customers are also advised to protect their accounts against cybersecurity threats, writes Assistant Business Editor, COLLINS NWEZE.

    intechs are financial technology firms relying on innovative use of technology in the design and delivery of financial services and products to consumers across different specters of the society.

    The Fintechs carry out lending, investment, payment,  funds management and provision of financial advisory services.

    Moniepoint,  OPay, PalmPay, Flutterwave, PiggyVest, Remita, Paga among others, are top players in the Fintech space.

    Banks are major users of technology. However, fintechs put technology at the heart of financial services offering, fundamentally changing the way in which companies interact with their customers.

    One major way the Fintechs have supported widespread deployment of financial services is through agency banking.

    The Central Bank of Nigeria (CBN) says the agency banking practice enables banks and other financial institutions extend their services to locations where they may not have physical presence.

    The CBN said financial service providers, government and policy makers, regulators have been making efforts at global, sub regional and  national  levels to increase access of excluded populations to finance. And one of the shortest routes to achieving this is agency banking.

    The banking model is cheap, easy to embrace and attracts low cost to serve. agency banking takes financial services to customers through a third party (agent) on behalf of a licensed deposit taking financial institution and/or mobile money operator. The Fintechs have made the realisation of agency banking objectives seamless.

    The apex bank recently deployed 30,000 Super Agents nationwide to assist in Cash Swap initiative in the hinterlands, rural areas, and regions underserved by banks in the country to ensure that the weak and vulnerable ones amongst people can swap/exchange their old notes for new ones.

    CBN Director, Payments System Management department, Must Jimoh, explained that over the years, the agency banking initiative has resulted to increase of financial services agents across Nigeria, resulting in a significant and growing portion of financial transactions being conducted through the agents.

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    For instance, within its first 100 days , Polaris Bank’s agency banking initiative, SurePadi, serviced over half a million customers impacting directly an estimated two million households across the seven business regions of the bank nationwide.

    Beyond the direct impact on customers and households in Nigeria, the sheer volume and value in financial numbers on the gross earnings of the bank has been significant as the agency recorded giant strides in the number of services and transaction volumes it processed which was valued N10 billion.

    Access Closa, another initiative to bring banking closer to the grassroots provides access to financial services right within the neighbourhoods.  Access Bank’s authorised agents process transactions quickly and easily via platforms such as Pos terminals or mobile phones, helping customers to carry out transactions without visiting a branch.

    Speaking at one of the  Access Bank’s ‘Compliance Engagements with Agents’ in Lagos, the bank said it is  through agency banking, setting standards for sustainable banking practices and delivering value to customers.

  • ‘Fintechs will foster inclusive capital market’

    ‘Fintechs will foster inclusive capital market’

    Managing Director, Central Securities Clearing System (CSCS) Plc, Mr. Haruna Jalo-Waziri has said increasing integration of financial technologies (fintechs) into capital market operations will lead to improved participation by the public.

    Jalo-Waziri spoke on “Harnessing FinTech Innovation for Inclusive Capital Market: Empowering individuals through Financial Access and Participation” at the Institute of Capital Market Registrars (ICMR)’s annual conference. The theme of the conference was “Navigating Nigeria’s Economic Realities: The Transformative Power of Technology in the Capital Market.”

    Jalo-Waziri emphasised the importance of embracing fintech innovations in the Nigerian capital market noting that FINTECH revolution has profoundly reshaped the landscape of capital markets.

    According to him, the integration of cutting-edge technologies, such as online trading platforms, robo-advisors, blockchain, and AI-driven analytics, has not only democratized access to investing but also streamlined processes, enhanced transparency, and fostered innovative investment opportunities.

    “This symbiotic relationship between fintech and the capital market is pivotal for sustainable financial growth, offering individuals and businesses alike the means to efficiently navigate and leverage the intricacies of modern financial ecosystems.

    “In other words, fintech is transforming the landscape of financial services, and we believe that it holds the key to making our capital market more inclusive and accessible to all. We are committed to pioneering this transformation for the benefit of every individual investor in Nigeria,” Jalo-Waziri said.

    He pointed out that adaptive technology and fintech solutions could enable broader participation in the capital market, assuring that CSCS would continue to explore ways to deepen participation at the market.

    “By harnessing innovative technologies, fintech is breaking down barriers, democratising access, and fostering financial inclusion. Through user-friendly platforms, fractional investments, robo-advisors, and educational resources, fintech is reshaping how individuals engage with the capital market. As these advancements continue to evolve, more people than ever before have the opportunity to take control of their financial futures, invest with confidence, and participate actively in the global economy.

    “Inclusivity is at the heart of our mission. We are leveraging the power of technology to provide financial access to all, from the experienced investor to the first-time market participant. This is how we envision a brighter and more equitable future for our capital market,” Jalo-Wziri said.

    Read Also: Banks, fintechs unite to curb $11.5tr cyber threats

    He also stressed the role of fintech in capital market, partnerships and collaborations in achieving these goals pointing out that FINTECH innovations have played a significant role in revolutionising capital markets by leveraging technology to provide streamlined and accessible financial services.

    Jalo-Waziri, who was represented by the Divisional Head, Business Technology & Digital Innovation, CSCS, Mr. Tobe Nnadozie, said fintech has transformed how trading, investing, and fundraising occur, fostering greater innovation and accessibility in the capital market landscape.

    “We are actively seeking partnerships with fintech companies and stakeholders across the financial sector. Together, we can build a more robust and accessible capital market that benefits every Nigerian,” Jalo-Waziri said.

    He noted that as the premier central securities depository (CSD) in Nigeria, CSCS continues to lead the way in modernizing the capital market by embracing cutting-edge technologies and innovative solutions.

    “Therefore, we invite all stakeholders, from regulators to market participants, to join hands in harnessing the transformative power of technology. Together, we can create an inclusive capital market that truly reflects the economic realities of Nigeria,” Jalo-Waziri said.

  • Banks, fintechs unite to curb $11.5tr cyber threats

    Banks, fintechs unite to curb $11.5tr cyber threats

    Banks, Fintechs and other financial institutions are rallying industry stakeholders against the rising cases of cyber frauds. Last week’s cyber awareness week presented opportunities for stakeholders to find ways  in tackling rising cases of e-fraud and estimated $11.5 trillion cyber threats to the global financial system, writes Assistant Business Editor, COLLINS NWEZE

    Nigeria and other global economies are at the risk of losing $11.5 trillion to cyber threats  in the year, if nothing is done to protect the cyberspace and global financial system, stakeholders have warned. 

    The need to protect the financial system against fraud was reaffirmed at the Cyber Awareness Week held globally last week. 

    Experts and stakeholders in the financial service sector have, therefore, called for the integration of multiple identity system into one to easily detect and track perpetrators of cybercrime.

    Speaking at the Information Security Society of Africa – Nigeria (ISSAN) Cybersecurity roundtable with the theme: “Re-thinking corporate governance rules on money transfers” in Lagos,  ISSAN President, David Isiavwe, stated the need for operators, law enforcement agencies and financial sector regulators to ensure that they were steps ahead of the cybercriminals.

     Isiavwe, who is also the Chief Compliance Officer of Ecobank Nigeria, noted that fintechs have a critical role to play in the future of financial services, noting that the more they innovate, the more they need to automate the attendant controls and ensure that they are monitored. 

    Central Bank of Nigeria (CBN) Director, Payment System Management, Musa Jimoh, lauded the efforts of ISSAN in promoting a safer cyber space for financial transactions, stressing that it is the responsibility of stakeholders to ensure a robust payment ecosystem and a sound regulatory regime as the apex bank cannot do it alone.

    He further emphasised that banks and FinTechs should put adequate measures in place to protect their customers, stressing that it was the only way to embrace and trust the payment system. 

    At the Deposit Money Bank, the United Bank for Africa (UBA) Plc hosted stakeholders and regulators at its Fraud Awareness Week.

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    The event is aimed at empowering customers with knowledge and tools to protect them against fraud and financial malpractices in the banking and financial sector.

    As part of its campaigns, the bank  held a Stakeholders’ roundtable. The guest speakers at the event were the Head, Cybercrime Investigation, Advance Free Fraud Economic & Financial Crime Commission (EFCC), Lagos State Command, Abbah Sambo Usman; Managing Partner; and Akin Adesomoju & Co, Akin Adesomoju.

    The panelists agreed on the need for collaboration among players, including banks, other financial institutions and agencies to help in providing the information, data and intelligence that would enable the detection of gaps in the fight against fraud in order to prevent occurrences.

     Group Managing Director, United Bank for Africa (UBA) Plc, Oliver Alawuba, who was represented by the Group Internal Auditor, Gboyega Sodiq, emphasised the critical significance of the stakeholders’ roundtable, underscoring that it formed a central component of UBA’s commitment to combatting fraud and safeguarding the integrity of the nation’s financial systems.

    He said: “In a rapidly evolving world of finance, where technology and innovation are transforming the landscape of financial services, the need for robust fraud prevention measures is more crucial than ever before.

    “This year’s campaign is encapsulated in two simple yet powerful slogans: “UBA won’t ask; so don’t share,” and “Stay secure, Stay alert, Stop the fraud”.

    “These slogans serve as a reminder that as a bank, we will never request sensitive information such as PINs, passwords, OTPs/token responses, or personal details via email, phone calls, or any other digital channels. They stress the fundamental rule that must be adhered to rigorously to maintain account security and combat fraud actively.”

  • Wigwe: AI, analytics imperative for banks, fintechs’ competitiveness

    Leveraging technology, such as artificial intelligence (AI) and utilising data analytics, is imperative if banks and financial technology (fintechs) are to remain competitive, the Group Managing Director/Chief Executive Officer, Access Bank, Mr Herbert O. Wigwe, said at the weekend.

    Speaking on The future of Intelligent Bank at AFF Disrupt 2019 held at Landmark Event Centre, Victoria Island, Lagos, he said, the world is witnessing the Fourth Industrial Revolution which uses the Internet of Things (IoT) and Cloud Technology to automate processes.

    This, he said, has enabled financial service providers to increase their digital offerings for customers so they can conduct banking transactions on mobile phones, the internet, and at the automated teller machine (ATM).

    The only waiting time today is how fast the internet connection is, Wigwe said, adding that 5G is already around the corner.

    He said: “With the prolific opportunities digital banking brings, banks are now competing on the nature of innovation that can provide solutions, handle and predict customer behaviour in an incredible fast manner. Even though banking has come this far, the future holds a lot more than what the past has ever held. Today, becoming an Intelligent bank is not an option, it’s a necessity; technology is redefining the way banks operate.

    “AI, Big Data, Cloud Computing, Virtual Reality, Cryptocurrency all bring enormous opportunities for banks to significantly improve the way customers access and manage finances.

    “Thanks to automation technology, banks and fintech’s are able to grant credit in seconds! AI reviews legal documents. A manual review of 12,000 documents use to take 360,000 hours, but today, this can be done in seconds using AI.

    “Blockchain can be used to execute smart contracts, eliminating manual costs of transactions;  Robotics technology is used to serve customers in banks. Only one decade ago, we could not have imagined such advances. And there is so much that can be done with data.

    “Big Data Analytics helps an intelligent bank understand its customers. This data categorises customers and analyses their behaviour and needs. Such understanding improves product development and enables effective cross and up-selling. Cloud Technology has also been a game-changer for banks. It reduces server and infrastructure costs, which is most appreciated in a country like Nigeria, where power generation is expensive, and its availability is not usually guaranteed. Cloud technology enables the delivery of work from any location … where programmers can be based in multiple countries yet be working on the same project.”

    According to him, intelligent banks are able to consider the impact of having an active online presence and social media for their business.

    Banks can target social media for specific advertising ensuring they provide the right product and content to the right customer instead of marketing all products to all customers.

    “In this sense, banking has become much more tailored and personal. Intelligent Banks partner with critical stakeholders to expand the frontiers of their business. For example, the opportunities that exist from partnering with Fintech’s are enormous.  Imagine instant cross-country payments between businesses that do not necessarily have a presence in those countries. Imagine third parties connecting to APIs to open accounts and making instant international payments. And partnering with Fintechs offers banks an opportunity to earn revenue from transaction sharing.

    “At Access Bank, we are acutely aware that AI is the new cool in banking offering ongoing opportunities to enhance convenience for our customers. We are in constant pursuit of being the best possible Intelligent Bank. Our applications of intelligent banking range from the review of legal documents, to conversing digitally with our customers. Our TAMADA system presents a single chatbot experience for all our customers.”