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Banks Hinder Customers’ Card Choices with Card Schemes Alignment

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Contrary to directive by Central Bank of Nigeria (CBN) for money deposit banks to offer their customers the option of choosing electronic card scheme of their choice, some banks still show preference for a particular card scheme against the others.

Nigeria CommunicationsWeek investigations revealed that some of the banks have adopted a system where customers’ cards are renewed as soon as it expires only to send the affected customer short message service (SMS) that he/she should go to his/her bank branch to pick it up without giving the customers opportunity to make choice of the card brand.

More so, if the customer refuses to accept the said card brand requesting for another brand, it will take some time before it will be provided and at a higher cost thereby discouraging such customer from going ahead with such demand.

Our investigations to ascertain why some banks pit tent to a particular foreign card scheme revealed that these card schemes in a move to get volume offer some banks incentives of which they can qualify to enjoy if they are able to issue their cards to a certain figure.

These incentives come in a way of marketing support or reduction in percentage of what the Bank pays for the switching of the card.

Nigeria CommunicationsWeek gathered that in some cases the reward is given ahead to the banks on the agreement that they will achieve the volume by an agreed period, while failure to meet that volume means such reward will be withdrawn.

Tunde Ogungbade, managing director, Global Accelerex an electronic payment value added operator, said that apart from the consideration revealed, banks also consider cards schemes that have global outlook. “I will go for a card that I can use outside the shores of the country in choosing a card scheme”, he added.

More so, greater percentage of cards issued by banks is for domestic use, and Interswitch owners of Verve the local brand has also entered into partnership with foreign brands for the card to be accepted in some countries.

He noted that global brands such as Visa and Mastercard have the economic power to invest and grow their brands locally in the country.

Charles Ifedi, managing director, Verve International an offshoot of InterSwitch, said he believe in value to the bank and value to the customer.

“Where I have an issue is a situation a customer asks for a particular brand and you decline to present that brand. However, as more brands deliver expected values, they shall continue to be accepted by the banks and expands customers’ choice. Meanwhile, it is the prerogative of the regulator which is CBN to determine who contravene its directive on providing customers the opportunity to choose. But if the deployment banks keep pushing more values into the market, like Verve is currently doing, the banks would not have option than to accept. Also, from the banks’ point of view, they would prefer to increase their international visibility or rating.”


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Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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