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SunTrust Bank to Capture 113m Internet Users

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SunTrust Bank said that it hopes to leverage on its technology services to make its services available to the over 113 million Internet and telephone phone users in the country’s telecommunications sector.

This is in addition to attracting the over 100 million unbanked Nigerians, which the back said it plans to attract into the banking sector through the use of innovative information and communication technology (ICT).

SunTrust Bank will operate the branchless banking model where it will deliver financial services outside conventional bank branches.

It hopes to eliminate the need for costly brick-and-mortar branches and hope to to use agent networks to reach its customers more efficiently.

Muhammed Jubrin, managing director and chief executive officer, Suntrust Bank, disclosed this in a chat with journalists, recently.

According to him, this move by the bank will go a long way in deepening the financial sector and achieving the Central Bank of Nigeria’s goal of encouraging the saving culture among the populace.

He said, “It is unfortunate that we have just about 30 million Nigerians within the banking sector, as captured by the Biometric Verification Number (BVN). This is alarming when we consider the number of Nigerians that should have bank accounts.

“We are determined to use technology to attract more Nigerians into the banking sector. We are very positive that this is possible, and with the success in the telecommunication sector, we are sure that our mobile banking applications will entice millions of able Nigerians into the sector.”

Jubrin said that the more than 113 million functional telephone lines now being used by Nigerians was a success story in the telecommunication sector, adding that it gives the management of the bank the hope that its aim of banking millions of unbanked Nigerians, using technology, is achievable.

“Suntrust Bank will bring banking to your home rather than make you come to us. We will be everywhere but we will be nowhere. We will offer telephone, mobile and Internet banking underpinned by the traditional banking ethics of probity and integrity,” he said.

The bank CEO explained that the bank’s competitive edge would be its strong reliance on technology, and noted that the bank would encourage customers to access its services from the comfort of their homes and offices and, as such, would not be engaging in a proliferation of branches.

“Our services will be available to our customers 24 hours daily, seven days a week and from anywhere in the world where there is good internet service. Our data centre is outsourced; this way, we will not have the overbearing requirement to put on the generator at our locations,” he explained.

Jubrin further stated that by adopting the branchless strategy, SunTrust will save the N100million-N120million required to build a modern branch and the about N2.5 million it costs to run generators at a typical bank branch.

‘‘We will not be emphasising physical security as we are making serious investment in cyber security instead. Over 90 per cent of banking transactions are being transacted electronically worldwide. Banking is no longer where you go to physical structures. The only financial institutions that can stand in the future are no longer those with physical branches but only banking services that will be driven by technology and, therefore, most customers of tomorrow will no longer be interested in going to the banking halls,’’ he added.

He also explained that the customers of the bank will be encouraged to use any Automated Teller Machines (ATMs) they wished because the bank will not be charging them the fee charged by other banks for using ATM platforms belonging to rival banks.


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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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E-Financial

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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