- Banks Should Adopt New Technology to Curb Fraud – Experts
Deposit Money Banks have been urged to be quick in adopting new technology and systems to curb fraud in the nation’s financial services industry.
Technology experts, who spoke in separate interviews with our correspondent, said there was a need for banks and other financial institutions to regularly upgrade their technology facilities to block loopholes and improve systems.
With the increase in the use of mobile phones for financial transactions and online purchases, the level of fraud in the industry has risen in recent years.
The Chief Executive Officer, VoguePay, Michael Simeon, said stronger and more refined technologies should be adopted by banks.
According to him, by evidence, technology has done more good than harm in the financial services industry by creating jobs and opportunities as well as improving competition.
He said, “Technology cannot be said to be a bad development. It is stale technology that allows for fraud. Technology such as blockchain makes it difficult to perpetrate fraud because you cannot beat the system.
“It also has auditing, which is quite good for compliance and regulatory authorities to audit. But most of the transactions in Nigeria are still not electronic, thus making it very difficult to monitor the activities and transactions or for government to audit transactions.
“Technology is a constantly evolving thing. You have to move as it is moving. When the systems are upgraded and up-to-date, it would make it impossible to defraud people. The challenge the banks are having is that they are not flexible. It takes them a lifetime to move, probably because they spend millions of naira to adopt and install a system.”
Simeon stated that banks in the country operated a closed banking system, adding that this was another hindrance to technology growth.
According to him, though banks are trying, a lot more can be done so that fraud can be totally eliminated.
The Chief Executive Officer, ENovaIT, Femi Ogunmokun, stated that there was a need for banks to invest in training or recruiting professional hackers to fortify their data and systems.
According to him, electronic fraud is mostly carried out by insiders or professional hackers.
Ogunmokun said it would be better to prevent an act or attempt at fraud rather than rectify it.
He added that awareness should also be carried out for bank customers to enlighten them on the risks associated with divulging sensitive bank information, such as card numbers, personal identification number and card verification value.
Ogunmokun said, “The way hacking works is that when you try to guess someone’s details, after a number of attempts without success, a notification is sent to the affected parties, and the perpetrator can be traced.
“What most hackers do now is to create fake pages and sites, look for how to pull traffic to the site, and then demand your bank details. People that are unfortunate to fall for it will have all their money stolen immediately. Or better still, the details can be kept, and then the money will be stolen when all guards have been let down.”
He added that the Nigeria Internet Registration Association as well as regulatory financial institutions had a role to play in verifying and monitoring websites to detect fake and unregistered ones.
According to him, security firewalls such as multiple verification mechanisms for bank owners when divulging bank details can also be created to prevent fraud.
COVID-19: CBN Extends Loan Repayment by Another One Year
Central Bank Extends One-Year Moratorium by 12 Months
The Central Bank of Nigeria (CBN) has extended the repayment of its discounted interest rate on intervention facility by another one-year following the expiration of the first 12 months moratorium approved on March 1, 2020.
The apex bank stated in a circular titled ‘Re: Regulatory forbearance for the restructuring of credit facilities of other financial institutions impacted by COVID-19’ and released on Wednesday to all financial institutions.
In the circular signed by Kelvin Amugo, the Director, Financial Policy and Regulation Department, CBN, the apex bank said the role-over of the moratorium on the facilities would be considered on a case by case basis.
The circular read, “The Central Bank of Nigeria reduced the interest rates on the CBN intervention facilities from nine per cent to five per cent per annum for one year effective March 1, 2020, as part of measures to mitigate the negative impact of COVID-19 pandemic on the Nigerian economy.
“Credit facilities, availed through participating banks and OFIs, were also granted a one-year moratorium on all principal payments with effect from March 1, 2020.
“Following the expiration of the above timelines, the CBN hereby approves as follows:
“The extension by another 12 months to February 28, 2022 of the discounted interest rate for the CBN intervention facilities.
“The role-over of the moratorium on the above facilities shall be considered on a case by case basis.”
It would be recalled that the apex bank reduced the interest rate on its intervention facility from nine percent to five percent and approved a 12-month moratorium in March 2020 to ease the negative impact of COVID-19 on businesses.
To further deepen economic recovery and stimulate growth, the apex bank has extended the one year-moratorium until February 28, 2022.
MTN Nigeria Generates N1.35 Trillion in Revenue in 2020
MTN Nigeria Grows Revenue by 15.1 Percent from N1.169 Trillion in 2019 to N1.35 Trillion in 2020
Despite the COVID-19 pandemic and challenging business environment, MTN Nigeria realised N1.346 trillion in revenue in the financial year ended December 31, 2020.
The leading telecommunications giant grew revenue by 15.1 percent from N1.169 trillion posted in the same period of 2019.
Operating profit surprisingly jumped by 8.5 percent from N393.225 billion in 2019 to N426.713 billion in 2020.
This, the telecom giant attributed to the surge in finance costs due to increased borrowings from N413 billion in 2019 to N521 billion in 2020.
MTN Nigeria further stated that the increase in finance costs was the reason for the decline in growth of profit before tax to 2.6 percent.
MTN Nigeria grew profit before tax by 2.6 percent to N298.874 billion, up from N291.277 billion filed in the corresponding period of 2019.
The company posted N205.214 billion profit for the year, a 0.9 percent increase from N203.283 billion recorded in the 2019 financial year.
Share capital remained unchanged at N407 million. While Total equity increased by 22.3 percent from N145.857 billion in 2019 to N178.386 billion in 2020.
MTN Nigeria’s market price per share increased by 61.8 percent from N105 to N169.90.
While market capitalisation as at year-end also expanded by 61.8 percent to N3.458 trillion, up from N2.137 trillion.
The number of shares issued and fully paid as at year-end stood at 20.354 million.
MTN Nigeria margins were affected by Naira devaluations and capital expenditure due to the new 4G network coverage roll-out.
“Margins were adversely affected by the effect of naira devaluation and expenses associated with new sites’ roll-out to boost 4G network coverage in FY’20.
“On the former, we note that MTNN expanded the scope of its service agreement with IHS Holding Limited and changed the reference rate for converting USD tower expenses to NAFEX (vs CBN’s official rate previously). Thus, over the full-year period, the company’s operating margin contracted by 1.9 ppts YoY to 31.7%,” CardinalStone stated in its latest report.
Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020
Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020
Nestle Nigeria, a leading food and beverage company, has declared a final dividend of N35.50k per 50 kobo ordinary share for the year ended December 31, 2020.
The beverage company said N24.50k of the amount declared was from the after-tax profit of 2020 and N5 and N6 were from the after-tax retained earnings of the years ended December 2019 and 2018, respectively.
Nestle Nigeria stated that the amount declared is subject to appropriate withholding tax and approval at the Annual General Meeting of shareholders.
It also noted that payment will be made only to shareholders whose names appear in the Register of Members as at the close of business on 21 May 2021.
Dividends will be paid electronically to shareholders whose names appear on the Register of Members as at 21 May 2021, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts.
Shareholders who are yet to complete the e-dividend registration are advised to download the Registrar’s E-Dividend Mandate Activation Form, which is also available on their website: www.gtlregistrars.com, complete and submit to the Registrar or their respective Banks.
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