Telecommunications firms, including South Africa’s MTN Group Ltd, are now interested in applying for licenses that will allow them, and even supermarket chains, to create units that can collect deposits and maintain savings accounts.
INTERNATIONAL - Nigeria is preparing rules that will allow wireless carriers to transfer cash, softening a previous policy that protected the turf of banks in Africa’s most populous country.
Major news outlets, carried the misconception that the Payment Service Bank guidelines were a regulation for fintech companies, and as expected, this sparked somewhat panicked conversations across in the industry.
The Finance Minister, Mrs Zainab Ahmed, in the year directed the CBN and the Nigeria Deposit Insurance Corporation (NDIC), to investigate and prosecute Directors and Executive Management culpable for its eventual collapse.
The increasing power of innovation in the technology used for financial and mobile banking services further raises these alarms, justifying the review of competition laws.
Further analysis of the statistics also showed that the volume of transactions carried out by Nigerians, using mobile money rose to N1.22 trillion as at September 2018, from N795.18 billion in 2017.
Dating back to March 2007, mobile money platforms in the country have provided financial services to the unbanked, made it easier to transact business as well as conveniently pay utility bills.
The transactions are accepted on point-of-sale (POS) terminals, and Automated Teller Machine (ATMs), with receipts printed or on eCommerce sites with emails sent to registered addresses.