- FSI Promotes Innovative Payment Solutions to Curb Fraud
The Financial Services Innovators (FSI) has expressed its commitment towards deepening financial inclusion in the country by providing safe innovative payment and identity solutions in order to prevent fraudulent activities within the banking space.
The company, during its maiden Hackaton competition, which is currently taking place in various regions of the country, said that the initiative was born from the idea of people being able to identify an individual with a unique identifier whenever and wherever they want to transact.
This, it explained, would enhance the level of trust when consumers are transacting with their banks, or merchants, or third-party service providers.
The Chairman, Financial Services Innovators, Iyinoluwa Aboyeji, while speaking with journalists midway into the programme, themed “How would you innovate payment and identity systems to prevent fraud and keep people safe with payments,” stated that the firm was prepared to make payment processes much more seamless and simplified in order to make it inclusive for everyone.
According to him, one of the goals of the company is to ensure Nigeria emerges as the financial technology service provider of the world, “which can be achieved by leveraging the infrastructure and financial institutions that we have.”
Aboyeji said, “Also, we have awarded the team that emerged as the winner the sum of N3m; the second-placed team got N2m; and then the third-placed team with N1m, respectively.
“In addition to this, we are going to be providing mentorship schemes in order to support them and upscale their innovations and solutions.”
He added, “We are also working towards engaging the regulators in order to help them understand the practical challenges innovators and customers are facing when it comes to financial inclusion in order for them to generate and implement policies that would drive financial inclusion.”
The Executive Director, Financial Services Innovators, Aituaz Kola-Oladejo, said, “We led the initiative to enhance financial inclusion in Nigeria because we believe that we have a large volume of talents in Nigeria.
“So, we are dedicated towards creating and driving innovations, thus this Hackathon is aimed at giving opportunities to the youth and delightfully, we have 20 teams competing for the top place.”
On her part, the Head of Innovation, Enhancing Financial Innovation and Access, Dayo Ademola, said, “This initiative would help bring thousands of hackers from around the world together in order to tackle a particular identified problem around identity and payment transactions.
“The hackathon initiative is important because it helps the financial sector to develop ideas from broader scope of people because solutions can come from anywhere.
“By tackling identity issues, we are able to develop products and services that are safer for people at the bottom of the financial pyramid and the mass market are enabled to engage in the payment infrastructure.”
Meanwhile, the Director, Payments System Management Department, Central Bank of Nigeria, Musa Jimoh, said, “The journey towards redefining the financial technology space has got to the stage where it is being redefined and enhanced with modern approaches.”
Represented by the Assistant Director, Payments System Management Department, CBN, he said, “We are looking forward to the financial technology sector experiencing innovative drastic change in regards to consumer payment behaviour, enhance the market confidence and encourage the use of digital financial services in Nigeria.
“The opportunity for the sector is very enormous, considering that till date many Nigerians are yet to have their first contact with formal financial services.”
The CBN director added, “However, the industry thus far has experienced immense growth and development. The major driver has been technology.
“It has introduced initiatives such as USSD payments systems, which made various financial transactions simpler and more effective.”
Meyer Cost of Sales Dwarf Profit in the Nine Months Ended September 30, 2021
Meyer Plc, one of Nigeria’s manufacturers and marketers of high-quality Paints, continue to struggle in the first nine months ended September 30, 2021.
In the company’s unaudited financial statements filed with the Nigerian Exchange Limited (NGX) and seen by Investors King on Friday, Meyer grew revenue by 34 percent from N566.511 million recorded in the first nine months of 2020 to N759.157 million in the nine months ended September 30, 2021.
However, the company spent 66.48 percent of its revenue on sales. Cost of Sales stood at N504,702 in the period under review.
Therefore, gross profit inched slightly higher by 23.46 percent to N254.455 million, up from N206.097 million achieved in the first nine months of 2020.
Loss from operating activities moderated to -N51.694 million in the period under review from -N133.510 million posted in the corresponding period.
Profit before tax rose to N13.534 million in the first nine months of 2021, up from -N98.404 million filed in 2020 during the peak of the global pandemic. The company paid N4.060 million in taxes in the period under review.
Similarly, profit after tax improved from -N100.528 million recorded in the same period of 2020 to N9.474 million in 2021.
United Capital Reports 72 Percent Increase in Profit After Tax in 9 Months
United Capital has officially rebounded from COVID-19 negative impact following a strong financial statement report released on Friday, October 15, 2021.
The company grew revenue by 60 percent year on year from N7.07 billion recorded in the first nine months of 2020 to N11.33 billion in the nine months ended September 30, 2021.
Operating income also jumped by 64 percent to N11.08 billion in the period under review, up from N6.76 billion achieved in the corresponding period.
As expected, operating expenses grew with an increase in revenue to N4.24 billion in the nine months under review from N2.95 billion filed in the first nine months of 2020.
Profit before tax stood at N7.09 billion in the first nine months of 2021, representing an increase of 72 percent when compared to N4.12 billion posted in the same period of 2020.
Profit after tax responded positively as it jumped by the same 72 percent year-on-year to N5.97 billion from N3.46 billion recorded in 2020.
Earnings per share also grew by 72 percent year-on-year from 77 kobo in 2020 to 133 kobo in the period under review.
See other United Capital key Financial Highlights
- Total Assets: N400.75 billion, compared to N222.75 billion as at FY 2020 (80% year-to-date growth)
- Total Liabilities: N373.86 billion, compared to N198.32billion as at FY 2020 (89% year-to-date growth)
- Shareholders’ Fund: N26.89 billion, compared to N24.43 billion as at FY 2020 (10% year-to date growth)
Comparing 9M 2021 with 9M 2020, the following are worthy of note:
− Total Revenue: During the period under review, United Capital’s total revenue increased by 60% year-on-year driven largely by growth in fee and commission income (+112% year-on-year) and Investment Income (+43% year-on-year).
− Cost-to-Income ratio: The company continue to maintain improvement in operational efficiency as cost-to-income ratio for the period declined by 10.25 percentage points largely attributable to the impressive growth in revenue (+64% year-on-year) relative to operating expenses (+44%year-on-year).
− PBT Margin: United Capital recorded an improvement in Profitability margin during the period under review as PBT margin increased by 7.32 percentage points to 62.60% in 9M 2021 compared to 58.33% in 9M 2020 as PBT grew by 72% year-on-year during the period under review.
− PAT Margin: PAT margin also increased, gaining 7.47 percentage points to 52.65% in 9M 2021 compared to 49.00% in 9M 2020 as PAT increased by 72% year-on-year during the period.
− Total Assets: United Capital’s total assets during the period under review grew by 80% year to date on the account of 98% increase in cash and cash equivalents and 90% growth in financial asset investment
Commenting on the company’s performance the Group CEO, Mr. Peter Ashade, said “I am pleased to inform our stakeholders that United Capital ended the third quarter of the year with another outstanding performance. We delivered an increased revenue of 60% year-onyear, PBT growth of 72% year-on-year to N7.09b and total asset growth of 80% year-to-date.
“During the period under review, United Capital successfully listed three series commercial papers worth N19.72 billion on the FMDQ Securities Exchange. The CPs were issued under the company’s N50 billion commercial paper issuance program. This has further positioned us as a company to provide a wider range of wholesale financing solutions to our clients and complement funding base and support for all our businesses.
“Another remarkable point to note was the Nigerian Stock Exchange’s reclassification of United Capital shares from Low Price Stock Group to Medium Price Stock Group in August 2021 driven by steady growth in the company’s share price over the past months due to our consistent impressive performance over the years.
“I want to assure our stakeholders that we are optimistic on sustaining this exciting performance in the last quarter of the year and beyond. We remain focused on our transformation agenda and to continue to provide best-in-class solutions to all client segments. We are also committed to deliver superior returns as we seek to always delight our shareholders.”
B2B Domestic Payment Transaction Values to Exceed $54 Trillion by 2023; Returning to Pre-COVID Levels
A new study from Juniper Research has found that the transaction value of B2B domestic payments across payment methods will exceed $54 trillion in 2023, up from $49 trillion in 2021. The research predicts a growth of 10%; reflecting a slow recovery in business activity following the impact of the COVID-19 pandemic.
The research identified that while many businesses are now operating at pre-pandemic levels, the longer-term economic consequences of the pandemic are still restricting value growth. As such, leveraging payments automation to reduce manual work and boosting small business cashflow will be critical to recovery.
For more insights, download the free whitepaper: Breaking the Innovation Stalemate in B2B Payments
Domestic Payment Methods Shifting as Digital Takes Hold
The new research, B2B Payments: Key Opportunities, Vendor Strategies & Market Forecasts 2021-2026, found that the need to automate B2B payments at scale is leading to a fundamental shift in the way payments are made. The research forecasts that the volume of B2B domestic cheque payments will fall by 30% globally between 2021 and 2023, with cash payments falling by 11% over the same period. The need to automate payments means a shift towards more easily automated payment types, such as card and instant payments.
Research author Nick Maynard explained: “The pandemic has accelerated the transition away from traditional payment types, with growth focused on instant payments and card payments. This transition will be important for automation, but will take some time, given the established nature of these processes.”
Instant Payments – Fastest-growing B2B Domestic Payment Method
The research found that by 2023, global instant payment transaction volumes in the B2B domestic channel will grow by 56%; the fastest of any single payment method. The research identified the launch of instant payment schemes that can carry additional remittance data as having significant potential for simplifying the complex B2B payments ecosystem. However, the report acknowledged the uneven state of instant payments scheme roll-outs as a critical limiting factor, with Europe moving much faster than North America.
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