Connect with us

Finance

Experts Advise Banks, Others on Tech Devices’ Usage

Published

on

Fintech
  • Experts Advise Banks, Others on Tech Devices’ Usage

Experts in the banking and other financial institutions have said that financial institutions are being directly positively affected by rapidly expanding innovation.

They said this had the potential to disrupt the strategy and business models of many financial institutions globally.

The experts noted that these developments in financial technology in addition to impacting on businesses could also affect the direction of regulation in the financial services industry.

They spoke during the 2018 CBN-FITC continuous education programme for directors of banks and other financial institutions in Lagos.

The Chairman, FITC Board, Mrs Aisha Ahmad, said that the growing Fintech adoption as evidenced by an upsurge in the number of new business start-ups, user cases and applications developed were partly attributable to the surge in e-commerce and increasing migration to smartphones.

“Research provides strong evidence that financial technology could transform existing business models and invent new forms of businesses in a profound way,” she said.

According to her, a challenge policymakers contend with is the need to manage sometimes conflicting priorities such as market growth, competition and safety in the financial system.

Ahmed explained that striking that balance might involve altering mature regulatory structures; defining how non-traditional financial service providers such as technology companies and retailers could fit within these structures; creating agencies, licences, or rules to oversee innovation; or fostering desirable financial services.

Whichever approaches regulators chose could have substantial effects on people’s financial well-being, she added.

She said it was cogent to examine the opportunities and threats in the emerging disruptive financial technologies in the marketplace, as well as stimulate ideas on other critical issues necessary for sustainable value creation by boards.

Although innovation is fundamentally a neutral force, the FITC chairman said its consequences could be clearly positive, facilitating consumer transactions, as the ATM did start in the 1960s, or markedly negative, such as when novel forms of mortgage-backed securities helped cause the great recession of 2007/2008.

She said the CBN-FITC event provided another opportunity for directors of banks and other financial institutions in Nigeria to further enhance their skills while providing the opportunity to interact with industry regulators, directors of other financial institutions, as well as experienced subject matter experts.

“This edition of the programme, being the 13th in collaboration with the CBN and FITCs 34th edition from 1985, has been designed to bring stakeholders together, to explore the complexities of financial technology and provide insights to directors on how best to provide oversight for this emerging potentially disruptive area, while assessing and utilising this technology for smart growth and sustainable long-term value creation.”

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

Published

on

Godwin Emefile

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.

Continue Reading

Banking Sector

CIT Microfinance Bank Disburses Over N16bn Loans

Published

on

micro-finance-bank

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.

Continue Reading

Finance

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

Published

on

FMDQ

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.”

Continue Reading

Trending