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Banks Set up Fund to Fight e-fraud

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  • Banks Set up Fund to Fight e-fraud

The Deposit Money Banks in the country have set up a multimillion-naira fund to fight scammers as the banking sector continues to record rising cases of electronic fraud.

Part of the funds will be deployed in massive anti-fraud campaigns to expose the tricks of e-fraudsters beginning January 2018.

The Chairman, Committee of Electronic Banking Industry Heads, the umbrella body for the heads of e-banking in all the commercial banks in the country, Mr. Dele Adeyinka, made the disclosure in an exclusive interview with our correspondent on Tuesday.

Adeyinka said, “Six months ago, in mid 2017, we realised that we needed to set aside some amount of money (running into hundreds of millions of naira) to create awareness about electronic fraud. We decided that an ‘X’ amount of all the transactions going through the NIBSS platform for the purpose of fighting fraud.

“What this means is that a fraction of the value of all the banking transactions going through the NIBSS platform is being set aside for this. In January 2018, we will begin massive campaign across all channels, social media, radio, television and print media to educate customers on the activities of fraudters. We are going all the way and we won’t stop once it starts because it is going to be on a sustainable manner.”

According to the Nigerian Inter-Bank Settlement System Industry Fraud Report, the banking industry recorded 6, 212 fraud cases during the second quarter of this year.

Within the period, the actual loss count was 3,211 while the actual loss value was put at N501m.

The report put the attempted fraud value at N791m.

“The Q2 2017 has a fraud volume of 6, 212 which depicts a 17 per cent increase when compared to Q1 2017 and Q2 2016 respectively,” the report read in part.

Adeyinka said the banking industry had realised the need to fight e-fraud in the banking sector by engaging in massive campaign to educate bank customers on e-payment fraud.

According to the CeBIH chairman, who is also the head of e-banking in Wema Bank Plc, the move to tackle the activities of fraudsters with the fund coincides with the Central Bank of Nigeria’s plan to resume cashless Nigeria policy next year.

“The fun is also in line with the regulator’s plan to resume cashless Nigeria policy next year,” Adeyinka said.

He said the heads of e-banking under the auspices of CeBIH was working with the Nigerian Inter-Bank Settlement System Plc and the Nigerian Electronic Fraud Forum to ensure that fraud cases were reduced to the minimum.

On the need to create a Customer Protection Fund to assist victims of electronic fraud to find better life, Adeyinka said issue like the Charge Back Process and Liability Shift were being looked into in order to ensure that victims of e-fraud get their refund as and when due.

In line with the principle of the Charge Back Process and Liability Shift, customers who are found to have compromised their personal banking details may not get any refund,

Liability shift means any party found to have compromised to faulty in a fraud case will bear the liability of the fraud, whether the bank, switch company or customer.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

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Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

The Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has pledged to adopt accommodative monetary policy stance in 2021 in order to support economic growth in the country.

Emefiele, said this on Friday, while speaking at a CBN/Bankers’ Committee’s initiative for economic growth, which is a one-day special summit on the economy by bank chief executive officers.

The theme of the summit is: “How to Overcome the Pitfalls of Recession.”

Nigeria’s economy recently came out of recession, according to the Gross Domestic Product report for fourth quarter 2020 released by the National Bureau of Statistics.

Owing to the slump GDP growth of 0.11 per cent that lifted the economy out of recession, Emefiele said it was imperative that, “we do all we can in 2021 and beyond to ensure that we build on the positive momentum and strengthen our efforts at stimulating growth.”

He expressed optimism that with the discovery and deployment of vaccines worldwide, 2021 would be a year of massive global recovery and Nigeria must not be left out.

“The banks CEOs are here, whether by moral suasion or by force, they will have to participate in this journey. In order to drive and sustain this recovery therefore, we need to sustain the accommodative fiscal and monetary policy measures aimed at improving access to finance for households and businesses.

“Secondly, we must prevent a resurgence in Covid-19 related cases. Thirdly, we must ensure that a significant number of our population is significantly vaccinated and also improve foreign exchange inflows into our country,” he added.

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Banking Sector

CIT Microfinance Bank Disburses Over N16bn Loans

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CIT Microfinance Bank Disburses Over N16bn Loans

CIT Microfinance Bank Limited says it has disbursed about N16bn loans since it commenced operations as part of its contributions to the financial sector and empowerment of businesses.

The Managing Director of the microfinance bank, Mr Kingsley Eremionkhale, disclosed this during the company’s 10th anniversary in Lagos recently.

He reiterated that the bank was committed to supporting the growth of small and medium-scale enterprises in the country.

“Since inception, we have disbursed loans worth about N16bn. Our operation is not just about profit-making, but we have impacted many lives, empowered many businesses, and done a lot in terms of our core mandate as a microfinance bank.”

While appreciating its customers who had been loyal to it for years, he said it was concerned about their business success.

The managing director said, “We are part of our customers’ businesses. We provide services beyond lending and savings products and we also give financial advisory services.”

He appreciated the customers who had stayed with the financial institution for many years.

The managing director noted that the MfB is a state-licensed bank operating in Lagos, and a subsidiary of Capitalfield Investment Group.

He also attributed the success of the MfB to the board of directors which it said had been supportive, the management team and its workforce in the past 10 years.

While saying that the bank could lay claims to exponential growth, he said the public should expect more from it.

He also said that it was driving its operations through its digital offerings and our e-channels, to improve its services to our customers.

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Finance

FMDQ Approves Valency Agro’s N5.12bn Commercial Paper

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FMDQ Approves Valency Agro’s N5.12bn Commercial Paper

FMDQ Securities Exchange Limited has announced the approval of the quotation of the Valency Agro Nigeria Limited N5.12bn Series 1 Commercial Paper under its N20bn CP Programme on its platform.

The Exchange said in fostering the development of the Nigerian debt capital markets, it had continued to avail its credible and efficient platform as well as tailor its listings and quotations services to suit the needs of issuers and registration members through innovative and uninterrupted service delivery.

It said in a statement on Thursday that the Valency Agro Nigeria CP debut issue came at a time when the Nigerian economy was bedeviled with soaring food prices, amidst compounding challenges of insecurity.

It said the agricultural sector and its attendant transformation agenda had never been more important in driving increased and sustainable production of agricultural products as well as the derived foreign earnings through exports.

The Exchange said the proceeds from the issue of the CP would be applied by Valency Agro towards meeting the mid-term working capital requirements of the various agricultural produce under its portfolio such as cashew, sesame, cocoa and in value addition prior to export.

The Executive Director, Valency Agro Nigeria Limited, Mr Sumit Jain, was quoted as saying, “We are thankful to our investors towards showing their faith in our agenda to grow the agriculture-focused business with a clear aim to maximise value addition and create employment opportunities in Nigeria.

“We would also like to commend the efforts made by FBNQuest Merchant Bank Limited’s team to build the reach and FMDQ for their unconditional support for the industry”.

The Head, Capital Markets, FBNQuest Merchant Bank, Mr Oluseun Olatidoye, said, “FBNQuest Merchant Bank Limited is delighted with the successful debut of the N5.12bn Series 1 CP issued by Valency Agro Nigeria Limited. This reiterates our effort to enable underserved sectors access the debt markets, optimise their capital structure and further deepen the domestic capital markets.

“We are proud of the instrumental role FBNQuest Merchant Bank played in this transaction and appreciate the trust the management of Valency Agro placed in us to assist them. Our clients remain our priority, and we strongly believe their success is our success.”

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