By Adedapo Adesanya

African telecommunication giant, MTN, is planning to acquire a full banking licence in South Africa.

According to reports, the telco plans to do this once the South African Reserve Bank (SARB) opens up its national payments system to fintechs and other non-banking entities.

MTN already has a banking service known as MTN Mobile Money (MoMo), but this supports limited transactional banking services.

MoMo offers payments and money transfers to individuals and businesses and customers use their phone numbers to carry out transactions like cash transfers and bill payments.

Due to stringent regulations, MTN and other fintech companies that offer these services work through a licenced bank as a sponsor. For MoMo, MTN uses the African Bank.

Now, this may change as SARB is reportedly working to enable non-banking entities like fintechs and telcos to gain direct access to the core clearing and settlements system.

The SARB is currently developing frameworks to authorise fintechs and other non-banking entities to access the national payment system directly.

According to the South African central bank’s head of the National Payments System, Mr Tim Masela, although banks were the backbone of the financial system in terms of savings and accounts, non-banks were offering convenient transactional services.

“We believe that we should move with the times and open up the system for the entry of non-banks,” Mr Masela said.

According to MTN South Africa’s chief fintech officer, Mr Kagiso Mothibi, entities like fintechs will be given an opportunity to participate in the banking system following an ongoing review of the payments system.

“When that is rolled out, we’ll definitely be looking to pursue our own licence,” Mr Mothibi said.

MoMo is one of several fintechs that participated in the SARB’s working groups to develop the regulatory framework that will enable greater direct participation in core banking services.

The frameworks are necessary to balance innovation with the risks associated with a more flexible and open financial system.

Mr Mothibi said that bypassing a traditional banking partner would allow MTN to exercise much more control over the future of its banking services.

By Modupe Gbadeyanka

The award for the Most Financially Inclusive Pension Company of the Year has been given to Stanbic IBTC Pension Managers.

The leading pension fund administrator in Nigeria got this accolade at the recently held International Financial Inclusion Conference (IFIC’24) organised by the Central Bank of Nigeria (CBN).

This recognition marks a significant milestone for Stanbic IBTC Pension Managers as it continues to advocate for financial education and empowerment; striving to create a secure future for individuals through effective pension management.

The award not only reflects the company’s efforts but also serves as motivation to pursue further advancements in financial inclusivity in Nigeria, contributing to the overall economic growth and stability of the nation.

According to the chief executive of the firm, Mr Olumide Oyetan, the management has mapped out several initiatives aimed at expanding access to pension services.

He listed these to include mobile applications that simplify the pension enrolment process, workshops that promote financial literacy and tailored pension products designed for informal sector workers and low-income earners.

He added that in collaboration with various community organisations and Non-Governmental Organisations (NGOs), Stanbic IBTC Pension Managers is also actively engaging underserved populations to raise awareness about the importance of retirement planning.

Mr Oyetan said this award from the central bank affirmed the impact of the company’s strategies for deepening financial inclusion in the country.

“IFIC’24 serves as a vital platform for financial sector stakeholders to collaborate and discuss strategies for enhancing financial inclusion, and we are proud to be recognised among key industry players.

“The conference highlighted the critical role of innovative solutions in achieving financial inclusion goals, aligning perfectly with Stanbic IBTC Pension Manager’s vision for accessible and equitable pension services.

“We believe that financial inclusion is not merely a goal; it is a fundamental right that empowers individuals, enhances economic stability, and fosters sustainable growth in communities.

“Our commitment to providing accessible and innovative pension solutions has always been at the forefront of our operations.

“This award is not just an acknowledgement of our efforts but a validation of our continuous endeavours to make pension services available to every Nigerian, irrespective of their socioeconomic status,” he stated.

The chief executive noted further, “By prioritising accessibility, we are breaking down barriers and ensuring that more individuals can secure their future through reliable pensions. This recognition motivates us to continue innovating and expanding our outreach.”

By Modupe Gbadeyanka

Any bank caught supplying minted Naira notes to currency hawkers will have to pay a fine of N150 million, the Central Bank of Nigeria (CBN) has warned.

In a circular issued over the weekend by the acting Director of Currency Operations Department of the central bank, Solaja Olayemi, it was stated that it was becoming embarrassing that new banknotes are hawked at social events when most Nigerians are unable to get cash from Automated Teller Machines (ATMs) of banks or over-the-counter.

The banking system has witnessed shortage of cash for a while, with most ATMs not dispensing cash to customers despite efforts by the regulator to address the situation.

In the notice, the CBN said the distribution of freshly minted Naira notes illegally to currency hawkers will attract a penalty of N150 million per branch involved.

The apex bank disclosed that to curb the illegal practice, it has ramped up enforcement measures, including spot checks at banking halls, ATMs, and mystery shopping at locations linked to currency hawking.

“Any erring deposit money banks or financial institutions that is culpable of facilitating, aiding or abetting, by direct actions or inactions, illicit flow of mint banknotes to currency hawkers and unscrupulous economic agents that commodify Naira banknotes, shall be penalised at first instance N150 million only, per erring branch and at later instances apply the full weight of relevant provisions of BOFIA 2020,” a part of the circular stated.

The notice stressed the importance of banks strengthening their internal controls, particularly in cash management at branches and during teller operations.