E-Financial
NDIC Assures Banks’ Customers Safety of their Deposit
Nigeria Deposit Insurance Corporation (NDIC) said its safety net coverage has reached 98 per cent of the customers of the Deposit Money Banks (DMBs).
Besides, it gave assurance that it has no course to rescue any bank from financial crisis after the incidence of the bridged banks that are now being put up for sale.
Mohammed Y. Umar, deputy director, Banking Examination, NDIC, , who made the disclosure at the sensitization seminar it organised for corps members at the National Youth Service Corps Orientation (NYSC) Camp in Sagamu, Ogun State, added that 98 per cent of deposits in banks are however, less than N500,000.
He noted that it was only two per cent of deposits in banks that are not currently covered by the corporation.
Umar, while explaining to corps members the major causes of liquidation of banks, he noted that the most dominant ones include operational risks, which has to do with systems, people, processes and external events.
“Internally, it could be a bank’ s lack of adequate capital. Inadequate capital will make a bank not to be able to operate and make profit and banks need to plough back earnings to grow. If a bank cannot grow, it will have liquidity issues and once such exists, there will be a run and no bank can survive a run on it,” he said.
He said that the senitization was very important because corps members are critical change agents, as most of them would be posted to the communities to serve and they will be interacting with the villagers.
He noted that corps members are just are just starting life, hence they too should know how to save for future purposes.
According to him, if corps were properly educated, they can easily tell the people in the village how safe their deposits are in the banks, which would encourage more people to open bank accounts and access financial services.
He pointed out that the corporation was using the senitization programme to drive financial inclusion as well.
“We also want the corps members to know how the financial services sector work so they can educate others. A lot of people are ignorant of banking services and are afraid that their deposits would be lost due to collapse of banks.
“There is nobody that has a claim in NDIC that we have not paid. The issue of deposit insurer is accepted worldwide, but low awareness about the value of deposit insurer is still key because they are only relevant when banks collapse,” he said.
Umar lamented that when people go to bank and withdraw their money, they do not really care if NDIC exists or not, but start looking for NDIC when they have problem with their banks.
Titan Trust Bank has selected Oracle FSS for its core and digital banking technology, it is understood.
The start-up bank recently obtained its license by the Central Bank of Nigeria (CBN).
It’s understood that Temenos and Infosys also competed for the deal.
The shortlist came down to the two most widely installed international core systems in Nigeria, Infosys’ Finacle and Oracle FSS’s Flexcube.
The Nigerian banking sector has seen a great deal of upheaval over the years, with many mergers, start-ups and closures. Flexcube is a well respected name since the late 1990s (the pioneer was Access Bank, now one of the country’s top five banks) and has been a commonly selected platform since then.
The new bank is believed to be one of five to have gained regulatory approval of late (Globus Bank is another).
Local media sources say the new licences stem from the Central Bank’s desire to attract new investments into the sector and better serve the country’s 50 million+ unbanked and under-banked citizens.
Titan Bank is said to be headed by a former executive director of Heritage Bank (which is a Finacle user).
Oracle FSS did not respond to request for comment.
International Monetary Fund (IMF), has appointed Tony Elumelu, Nigerian billionaire and group chairman of Heirs Holdings, owners of United Bank of Africa, to its advisory council on entrepreneurship and growth, convened by Kristalina Georgieva, the fund managing director.
The announcement was disclosed in a statement on Friday.
According to the statement, the IMF advisory council comprises global business leaders, policymakers, and academics dedicated to identifying and addressing regulatory barriers to entrepreneurship.
The IMF said Elumelu will be instrumental in ensuring that Africa’s entrepreneurship is central in policy making.
“Elumelu, Africa’s leading advocate of entrepreneurship and whose Foundation has funded, mentored, and trained over 25,000 African entrepreneurs since 2015, champions entrepreneurship as the engine for the economic transformation of Africa,” the statement reads.
“A self-made entrepreneur, Elumelu’s embracing of entrepreneurship is fundamental to his concept of Africapitalism, his belief that Africa’s private sector can and must play a leading role in the continent’s development, making long-term investments that deliver social and economic value.
“Elumelu will be instrumental in ensuring that Africa’s entrepreneurial potential is central to global economic policy making.”
Speaking at the inaugural meeting of the advisory council on March 26, Georgieva said the appointees would share their experiences on how macroeconomic and financial policies “can provide a supportive environment for innovation, entrepreneurship, and productivity — key ingredients for a thriving private sector and strong economic growth”.
Africa’s Micro, Small, and Medium Enterprises, fintech industry, scaling remittances, and cross-border payments will be the driving forces behind the continent’s digital ballooning payments system, which is estimated to reach $1.5 trillion by 2030.
This is according to a MasterCard-commissioned study by Genesis Analytics, which states that the digital payments economy is growing faster on the continent.
This comes as the World Bank says Sub-Saharan Africa has shown significant growth in financial inclusion over the past decade, much of it driven by mobile money account adoption.
Dimitrios Dosis, president, Eastern Europe, Middle East and Africa at MasterCard, comments: “Africa is filled with immense possibilities, and its people have the potential to shape the global economy in the decades ahead.
“MasterCard remains deeply committed to driving digital transformation across the continent, working closely with entrepreneurs, merchants, banks, start-ups, telcos, and governments. By increasing our investments, expanding innovation, and fostering inclusion, we are helping build a more connected and accessible digital future.”
The payment technology company went on to say as a longstanding technology partner to Africa, its continues to strengthen its commitment to the continent’s digital growth through strategic investments, public-private partnerships, and innovation initiatives that drive financial health and economic growth.
In addition, it says trends in Africa signal a strong shift towards digital transactions, with businesses and consumers increasingly embracing contactless solutions, further accelerating economic participation and financial accessibility across the region.
“For over five decades, MasterCard has worked alongside African governments, businesses, and communities to advance financial inclusion and economic development.
“With Africa projected to host nine of the world’s 20 fastest-growing economies, we are focused on leveraging our expertise and a technology to support the continent’s continued digital transformation.
“Our investments today will help build a more resilient economy for the future,” says Mark Elliott, division president, Africa, MasterCard
By fostering collaboration with key stakeholders, MasterCard says it aims to enhance digital connectivity, expand economic opportunities, and enable millions of people and businesses to thrive in the digital economy.
Titan Trust Bank Selects Oracle FSS for Core and Digital Banking Technology
IMF Appoints Elumelu, Nigerian Businessman to Advisory Council
NCS to Launch Electronic System for Cash Declarations at Airports
IHS Nigeria Hosts Telecom Industry Stakeholders to Discuss Protection of Critical National Infrastructure in Lagos State
Aquaterra Energy Secures Multi-million-dollar well Intervention Contract with Intrepid Energy in Nigeria
News2 days agoCourt Throws Out Falana’s Fraud Case against Ekeh, Zinox Boss and Others
E-Financial2 days agoHeritage Bank Depositors Seek National Assembly’s Help to Recover Trapped Funds
Telecom2 days agoNokia Unwraps 5G Gateway for Home Internet
News2 days agoFG Receives N1Bn Grant from Airtel Africa to Boost 3MTT Programme
News2 days agoFG to Halt Solar Panel Imports, Pushes for Local Manufacturing
E-Business2 days agoSenate Passes Bill to Re-enact NIMC Act
Telecom1 day agoAgain, Labour Fumes, Threatens Shutdown of Telcos over Non-Implementation of 15 Percent Tariff Reduction
E-Business1 day agoQNET Disassociates From Fraudulent Academy in Abuja, Supports EFCC Arrest