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Fintech CEO: Samsung’s Involvement in BOK Trials Illustrates Desire to Bridge Chasm Between Fintech and Consumer Technologies

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Global Banking - Investors King

This month, Samsung announced its participation in a Bank of Korea project which aimed to develop a platform for a CBDC. The pilot will “research the practicalities of the CBDC in a test environment” according to an executive quoted by The Korea Times. The Bank of Korea is particularly interested in use studies of a central bank digital currency in terms of international remittances and the technical components involved in a potential launch. For its part, Samsung is aiming to test the blockchain-based systems on its suite of Galaxy smartphones.

“We have another country downplaying cryptocurrencies, while still keeping the door open to a CBDC revolution. And, while they may not call it a revolution, CBDCs will, indeed, be revolutionary for our financial system. With the BOK moving forward to study this and involving one of the largest smartphone producers on the planet, this is going to be one of the more important studies to follow,” said Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges.

“Samsung’s involvement is critical beyond how they will participate in this particular test. Samsung is a premier provider of smartphone technology. That they want to see how their technology works in conjunction with a CBDC indicates that the company sees seismic shift coming,” Gardner opined.

“Will it be possible to conduct payments via mobile phones using the digital currency with no internet availability, or to send CBDC remittances to other mobile phones or to other connected bank accounts, are the two core points that Samsung is looking at,” according to a company official.

“We’re at a point where stablecoins have gained traction, and central banks are beginning to see urgency in rolling out their own digital currencies. While some governments are under more pressure than others, it is clear that there is demand for a digital currency. Without a CBDC, stablecoins are setting themselves up to fill that market need. The time for central banks to begin moving on this innovation is here, and it has been here for quite some time,” said Gardner.

Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies. Over the past twenty years, the company has built technology for the world’s most notable exchanges, with a client list which includes NASA, NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago.

“Beyond just putting out a technology which is competitive to stablecoins and cryptocurrencies, there is significant upside to CBDCs. For example, they will lessen the burden of cross-border payments. They’re also likely to decrease the costs associated with banking. This could open up significant new access points to the currently unbanked populations. It isn’t a stretch to say that, for some segments of the population, CBDCs could be a life-altering innovation,” opined Gardner.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Banking Sector

Unity Bank, CashToken Rewards Promo Produces New Millionaire

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A Unity Bank customer, Mr. Amadi Chinmenem Gift Chike, has emerged as the latest winner of One Million Naira in the ongoing Cash Rewards Promo by Unity Bank Plc and CashToken Rewards Africa.

CashToken Rewards Africa is a Cash-Reward-as-a-Service company that rewards customers for their patronage and loyalty.

Mr. Amadi, a customer from Unity Bank’s Aba Road Branch, Port Harcourt, Rivers State, won the cash prize after completing qualifying transactions on Unity Bank’s digital banking channels including Unifi, *7799#, and on his Unity Bank-issued Verve card. Through these transactions, he received CashTokens, which entered him into the weekly national consumer draw, where he was selected as the lucky winner of the N1 million prize.

The grand prize winner, Mr. Amadi is the second customer to claim the N1 million grand prize in the rewards promo, which commenced in November 2023. Since the launch, Unity Bank customers have collectively won over N6 million in cash rewards.

Unity Bank and CashToken Rewards promo offers guaranteed instant cash rewards and life-changing opportunities for loyal customers who transact on any of the Bank’s electronic payment platforms, including the Unifi mobile banking application and the *7799# USSD platform. Every card transaction earns customers CashTokens, which qualify them for the weekly national consumer draw, with prizes ranging from N5,000 to N100 million.

Presenting the cheque to the winner in Port Harcourt, Unity Bank’s Regional Manager for Port Harcourt/Uyo Region, Mr. Etop Ikpe, congratulated the winner and reiterated the Bank’s commitment to building a sustainable loyalty platform for customer engagement and satisfaction.

He said, “We are happy to see another one of our loyal customers win a substantial cash prize through the Unity Bank and CashToken Rewards Promo. This initiative aligns with our mission to reward customer loyalty while providing a seamless and rewarding banking experience. As we continue to innovate and enhance our digital banking platforms, we are committed to creating more opportunities for our customers to benefit from their relationship with Unity Bank.”

In his reaction, an elated Mr. Amadi said, “This is a reward for my steadfastness. I have been banking with Unity Bank for a long time and I am really happy to win the cash prize. I commend the bank for the initiative and Unity Bank has always come through in keeping their promises both in terms of service delivery and meeting expectations of customers.”

Also commenting on the development, Simi Adeoye, Chief Business Development Officer for CashToken Rewards Africa, added: “We are proud to partner with Unity Bank in bringing life-changing opportunities to their customers through our Cash-Reward-as-a-Service model. We aim to make every transaction meaningful by turning regular banking activities into chances for customers to win significant rewards. We congratulate Mr. Amadi on his win, and we look forward to creating more millionaires as the promo continues. Mr. Amadi just like other beneficiaries can easily cash out his win by dialling *6700#, following the prompt and transferring his wins directly to his Unity Bank account.”

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Banking Sector

Zenith Bank Enhances E-Channel Services for Customers

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Zenith Bank - Investors King

Zenith Bank, one of Nigeria’s leading financial institutions, has restored improved services across its electronic transaction channels, ensuring customers have seamless access to banking services.

In a statement released on Thursday via its X handle, the bank confirmed that customers can now conveniently conduct transactions across various platforms following a recent upgrade. These enhancements follow temporary glitches caused by routine IT maintenance aimed at optimizing service delivery.

Zenith Bank reiterated its commitment to providing improved services and highlighted the various channels available for customer transactions, including:

– Zenith Bank Debit, Credit, and Prepaid Cards
– Automated Teller Machines (ATMs)
– Point of Sale (POS) Terminals
– Zenith Bank Mobile App
– Internet Banking Platform
– Zenith Agents nationwide for agent banking

Customers are also encouraged to visit any of the bank’s branches across the country for in-person transactions.

Zenith Bank reassured further improvements in service delivery following the IT infrastructure upgrade. Customers with bulk payments and salary requests are encouraged to present payment mandates at any Zenith Bank branch nationwide for expedited processing.

Zenith Bank remains dedicated to enhancing customer experience and ensuring reliable banking services across all platforms.

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Banking Sector

Nigerian Banks Face Soaring Wage Bills Amid Rising Inflation

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First Bank

Many Nigerian commercial banks have been spending more on hiring staff, fresh data has revealed.

Following worsening inflation in the country, some banks have to pay more for their newly hired workers, thus doubling the banks’ wages and salaries in just over a year and putting pressure on their operating costs.

The data showed that wages and salaries incurred by 10 banking groups in the first half of 2024 (H1 2024) stood at N615.8 billion, representing a 96 percent growth from the N314.4 billion incurred in H1 2023.

The banking groups are Access Holdings, UBA, FBN Holdings (First Bank), GTCO (GT Bank), Zenith Bank, Stanbic IBTC Holdings (Stanbic), Wema Bank, FCMB Group, Sterling Holding Company (Sterling), and Jaiz Bank.

It showed that Access Holdings incurred the highest wage bill among the banks, with N151.5 billion, up by 145 percent from the N61.9 billion reported in H1 2023 while First Bank’s personnel expenses for H1 2024 hit N134.2 billion, marking a 110 percent year-on-year increase from the N63.9 billion personnel expenses incurred in H1 2023.

For UBA, its wage bill grew by 92 percent year-on-year to N126.6 billion during the six months, up from N65.9 billion as of H1 2023. Also, Zenith Bank’s wage bill soared by 64 percent year-on-year to N63.5 billion, from N38.6 billion in H1 2023. Stanbic incurred wage expenses of N40.6 billion during the six-month period, up from N28.2 billion in H1 2023.

GT Bank’s wage bill almost doubled, increasing by 98 percent year-on-year to N39.3 billion, up from N19.9 billion in H1 2023. FCMB Group’s wage bill grew by 74 percent to N26.6 billion in H1 2024, up from N15.2 billion reported in the corresponding period of 2023.

In the same vein, Wema Bank’s wage also went up by 77 percent to N15.6 billion, from N8.8 billion in H1 2023. Sterling Bank’s wage bill also jumped by 41 percent year-on-year to N12.5 billion, from N8.9 billion as of H1 2023.

Jaiz Bank’s wage bill went up by 78 percent to N5.5 billion, from N3.1 billion in H1 2023.

The data showed that for some of these banks, the increase in employees also contributed to their rising wage bills, though, marginally.

For example, Zenith Bank increased its employee count by 511 to 8,146 between H1 2023 and H1 2024. UBA’s employee count between H1 2023 and H1 2024 increased marginally by 3 percent or 338, from 9,751 to 10,089.

While some companies downsize their staff strength, due to the harsh economy in the nation, the few available workers have been overloaded with work.

With inflationary pressures hitting hard on individuals and businesses, companies have been forced to substantially increase the wages for the few available staff.

For banks, apart from their staff wages, they have also had to incur increased outsourcing costs. Outsourcing costs relate to expenses incurred when a bank hires third-party contract staff.

GT Bank’s outsourcing costs increased by 69 percent year-on-year to N14.5 billion during the half-year, in contrast with N8.6 billion in H1 2023. First Bank’s outsourcing costs jumped by almost 300 percent year-on-year during the half-year to N16.4 billion, from N4.3 billion in H1 2023. Wema Bank also saw a dramatic increase in its outsourcing costs, posting N8.85 billion for the category in H1 2024, representing a 272 percent year-on-year growth from N2.38 billion as of H1 2023.

The jump in labour costs for banks has positioned some of them as the top-paying employers in the country. For instance, in H1 2024, Stanbic IBTC Holdings posted a wage per employee of N2.11 million per month. Zenith Bank had a wage per employee of about N650,000 per month, a stark comparison with UBA’s N2.09 million per month. However, UBA’s foreign operations employ about 4,150 staff members.

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