Connect with us

Markets

Inflation Fuelling Increased ATM Cash Withdrawal – First Bank

Published

on

ATM machine

Group Head of e-Buisness FirstBank Nigeria Limited, Mr. Chuma Ezirim provides highlights into trending issues in the electronic payment (e-payment) space as well as the bank’s efforts to encourage customers to embrace cashless transactions.

NIBSS reported that Nigerians withdrew N4.7 trillion through ATMs in 2016.

Why are we will still depending so much on cash despite cashless policy initiatives?

The cashless policy initiative is evolving and work in progress and as such yet to address all of the mass market needs in the market. Also, cash still remains the primary and preferred means of transacting in mass to lower affluent segments of the market.

ATM remains the most popular electronic channel. The structure of the POS Business in the country is still fluid, while the other non-cash payment options like USSD, QR Code, and Web are still emerging.

The dollar exchange rate against the Naira created a burden on the people and a hike in the prices of goods and services in the country (Inflation also increased from 10.4 percent in December 2015 to 18.5 in December 2016). Hence, people needed more cash to buy fewer goods as the value of naira became weak.

Despite increased roll-out of PoS and mobile app, lots of merchants (petrol stations, traders, etc) do not have or offer e-payment channels to customers. What is the challenge of banks in this regards and how is your bank responding to this challenge?

The reasons given above on the slow progress of the cashless initiative, also affect adoption rate by merchants. In the case of POS, the uptake is also hampered by the current POS operating model in the country which makes the business unprofitable to Banks/Acquirers and prevents sizable investment in the channel. In the case of Mobile Apps, the platform is currently not widely adapted to payments. Most of the solutions on typical mobile banking apps are not adapted to payments. However, industry-wide efforts are ongoing to introduce mobile payment solutions such as USSD and contactless payments (QR Codes, NFCs etc.)

Some banks, including FirstBank, in recent times have launched various mobile payment applications. What is the prospect that Nigerians will embrace the culture of using the phones for payment?

Transactions on non-cash payment channels have continued to witness impressive growth in recent past. In the last two years alone transactions on our mobile platforms grew by over 2,300 percent. Also, Nigeria leads other markets in Africa in terms of growth of Mobile penetration. At 40 per cent penetration, and 75 million unique mobile users, Nigeria has huge potentials in this area. It is noteworthy that in similar markets such as Brazil and Kenya, mobile payment is widely accepted and can be said to have been successful.

Besides the roll-out of epayment channels, how is FirstBank encouraging their customers to embrace cashless transactions?

FirstBank has a point- based Loyalty Scheme and Merchant Discount Incentive initiative that reward customers when they make use of non-cash channels for their transactions. We also employ a continuous customer education and campaigns on an ongoing basis.

The world has witnessed upsurge in the rise and use of virtual currencies like Bitcoin, in your view, what should be the appropriate response from the banking industry and the government?

The virtual currencies have a number of advantages such as cost savings and speed, which banks cannot afford to ignore. The profile of an average bank customer has changed over the years. Customers have higher expectations of service and are insisting on how they should be served by their banks. The growth of crypto-currencies over the years shows the level of interest by customers. Central Banks across the globe are actively reviewing the development and CBN has set up a team to review the developments in the Nigeria. Ultimately, banks would eventually play under a well regulated regime to explore opportunities in areas like payments, trade finance, treasury and security, reporting, etc.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

Published

on

Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

Continue Reading

Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

Published

on

Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

Continue Reading

Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

Published

on

Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending