Banking
Stanbic IBTC: Banking Industry Compliance, Corporate Governance Practices
At a recent function in Abuja, the Managing Director/CEO of the Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim, delivered a lecture where he revealed that there has been a consistent decline, over the past three years, in the recorded rate of successful fraud incidences, thefts and forgeries in the banking industry. Specifically, Ibrahim said such cases had declined by almost half, 48.12%, of the rate it was in 2015.
In response to how the industry was able to achieve such impressive reductions, Ibrahim, while putting in perspective the key reason for frauds to help buttress his response, explained that poor corporate governance practices in terms of regulatory and supervisory oversight and compliance allow frauds and forgeries to thrive. So all that needed to be done was to ensure a stronger corporate governance practice. He said the reduction is indicative of the strict adherence to sound corporate governance practices by banks, which include compliance with regulations.
Indeed, experts at a recent workshop organized by the National Institute of Compliance (NIC) agreed that compliance is at the heart of sound banking practices and sustainable banking and that the risk of banking industry failure is remoter now than it was some years back due to a higher level of compliance. The nature of the banking industry, with its intermediation functions, is such that failure can have very dire consequences for businesses and the economy. Thus, banks have a responsibility to ensure a stable industry and this can only be achieved by sound corporate governance practices.
In the 90s and early 2000s, regulatory and supervisory oversight was weak and compliance by banks to regulations was mainly in the breach. Then, the industry was an all comers’ affair, mostly populated by charlatans who see the industry as mainly a meal ticket. Banks were being opened at a dizzying pace then, with sometimes three or four opened in a month. Before the recapitalization exercise of 2005, there were close to 200 banks in the country. There was widespread corruption in the industry at the time, which led to billions of naira of depositors’ money and investors’ funds lost or misappropriated. But following the recapitalization exercise and especially after the global financial crisis of 2008, corporate governance became a major issue leading to the introduction of a raft of corporate governance codes.
For a bank like Stanbic IBTC, regulatory compliance comes like second nature. The brand’s penchant for regulatory compliance was validated in 2015 at the maiden edition of the Corporate Affairs Commission’s Corporate Citizens Awards. Stanbic IBTC Bank came first for compliance among Nigerian banks and was awarded the Most Extensive Compliance award. According to CAC, “over 800 companies were nominated for the awards, only 26 companies made the final list, out of which the nine winning companies emerged,” including Stanbic IBTC and three other banks.
Certainly, there is no better validation than a regulator attesting to a company’s good corporate citizenship. And it is no surprise that a bank like Stanbic IBTC was adjudged the first among equals in terms of compliance. Many sometimes view the bank’s processes and policies as cumbersome because of the different layers of regulatory requirements it insists must be met before a transaction can be consummated. But then on the flip side is that Stanbic IBTC Bank is one of the most secure, transparent and trusted financial institutions in the country today. These qualities continue to translate into very strong financial performances in its operations and a bullish outlook for the stock at the Nigerian Stock Exchange. In its 2018 financial report, Stanbic IBTC Bank posted an impressive 54% growth in PAT. Balance sheet grew by 20% to N1.6 trillion, driven mainly by deposit growth of 7%. And most importantly, was able to improve its asset quality as ratio of non-performing loans to total loans improved to 3.9%.
Financial institutions, particularly Stanbic IBTC, fully appreciate and understand that their survival depend on how well they are able to manage the relationships amongst their stakeholders, which require them to establish and maintain harmony between parties whose interests sometimes conflict. It is the management of such relationships that corporate governance code embodies. It is this realisation that led banks to self-regulate when in 2003 the Code of Corporate Governance for Banks and Other Financial Institutions in Nigeria was established by the Bankers’ Committee and CIBN.
Stanbic IBTC’s strong corporate governance practices is critical to the financial institution’s continued growth trajectory. The seamlessness of its change of leadership last year was quite impressive and such practices will no doubt give it the desired stability to further increase its market share and to post impressive financial results, going forward.
With the 2003 code, the 2014 CBN code and a spate of regulations by the apex bank as situation demands, which makes for a stronger regulatory oversight, one can almost argue that the possibility of a banking industry failure is remoter than constant uninterrupted power supply in the country. Despite the cost of compliance, which can sometimes be huge and burdensome in terms of time and direct cost, and the risk of managements of banks becoming particularly focused on compliance at the expense of doing business, financial institutions remain resolute in ensuring a strong and viable industry. And this is beginning to produce dividends as shown by the recent NDIC figures and the industry’s financial scorecards.
Today, banks sometimes face the wrath of stakeholders as they strive to comply with regulatory directives. A case in point was the directive by the CBN that banks publish the names of delinquent debtors on its books, which did not go down well with some customers. Another was the foreign exchange utilization position, mandated to be published weekly, and the various restrictions to dollar disbursements to bank customers. Treasury Single Account (TSA), which required all agencies of government to each maintain a single account with the CBN, leading to the withdrawal of trillions of naira from commercial banks, was another policy that banks would have gladly avoided but nonetheless diligently complied with. And most recently is the ‘appointment’ of banks by the Federal Inland Revenue Service as tax collecting agents, which pitched the banks directly against some of their customers and trade partners.
There is no doubt that there is a new compliance orientation in the banking industry. And as banks like Stanbic IBTC, Zenith Bank, Access Bank and UBA continue to lead the financial services industry towards improved compliance levels, it will not only check corruption in the banking industry and risk of possible collapse, it will, due to banks’ pivotal role in the economy, help sanitize business practices and thereby attract investors and boost the economy.
By Modupe Gbadeyanka
A new digital-first remittance solution known as Absa Global Pay has been launched through a partnership between Absa Group and Thunes.
The Absa–Thunes collaboration helps to make international remittances seamless in Africa through intuitive, transparent and cost-effective solutions.
The partnership combines Absa’s trusted Pan-African banking footprint with Thunes’ agile Direct Global Network to deliver an end‑to‑end, real‑time money movement experience.
Absa Global Pay makes sending money across borders faster, simpler and more affordable for millions of customers across Africa.
Absa customers can send funds directly from the Absa Banking App or Connected Banking (Absa Online) with instant settlement to 18 countries, with six countries forming part of the first release (UK, Kenya, India, Malawi, Pakistan and Zimbabwe). Customers can choose from multiple payout methods — bank accounts, mobile wallets or approved cash pick‑up points — with real‑time notifications and full transaction visibility for added confidence and control.
By leveraging Thunes’ trusted Direct Global Network and Absa’s scale across key African markets, the solution offers lower fees, clear pricing, competitive FX rates, and greater value, ensuring that more of each transaction reaches the families and businesses that depend on remittances as a financial lifeline.
“At Absa, we are committed to building financial services that are innovative, intuitive and deeply connected to the everyday needs of our customers.
“Remittances remain essential for keeping families supported across borders, and our research shows a significant opportunity to unlock more value in this space. “Together with Thunes, we are delivering a solution that is simpler, faster and more affordable — empowering customers with choice, transparency and meaningful value,” the Managing Executive for Transactional and Deposits at Absa Personal and Private Banking, Mr Nick Nkosi, said.
On his part, the Chief Commercial Officer at Thunes, Mr Simon Nelson, said, “By combining Absa’s deep local insights with Thunes’ expansive Direct Global Network, we are making international money movement seamless and accessible for anyone, anywhere. This launch is an important milestone in our mission to support the growth of the continent by powering intra-Africa money movement and bringing inclusive financial connectivity to communities across the world.”
By Modupe Gbadeyanka
A nationwide marketing campaign signalling a strategic shift toward proof-led messaging in Nigeria’s fast-evolving fintech sector has been launched by Smartcash Payment Service Bank (PSB).
At the unveiling of this initiative in Lagos on Tuesday, the Airtel-owned digital financial services platform said the No Be Cho Cho Cho campaign represents a new chapter for Smartcash, following its earlier Money Matter Na Sense positioning, reflecting the company’s rapid growth and increasing role in Nigeria’s digital financial ecosystem. The platform now serves nearly three million active wallets, with users spanning students, traders, households and small businesses across the country.
The phrase, Cho Cho Cho, a popular expression in Nigerian street parlance meaning “talking without action,” is used deliberately by the company to challenge the hype-driven marketing culture that has often characterised the fintech sector. Instead, Smartcash says the campaign will focus on demonstrable performance and measurable value for customers, which means “Smartcash dey show workings”.
The initiative centres on the three pillars of reliability, transparency and demonstrable service delivery and addresses what the company describes as a widening trust gap in Nigeria’s digital payments market.
The chief executive of Smartcash PSD, Mr Ayotunde Kuponiyi, described financial inclusion as a critical pillar of the United Nations Sustainable Development Goals, noting that with the launch of No Be Cho Cho Cho, the firm is proving its commitment to this vision.
“We have built an accessible banking service that breaks barriers for everyone, from corporate executives to the previously unbanked, pulling them from the sidelines to centre stage. Through our flagship zero-charge service, we promise no fees on P2P transfers or bill payments.
“Furthermore, our savings account offers 15 per cent per annum compounded interest, paid daily without penalties. Unlike conventional banks, we charge you nothing, ensuring your money truly works for you,” he explained to newsmen at the event.
Smartcash’s zero-charge model, which eliminates fees on transfers and bill payments, has become one of the platform’s defining features, alongside instant transfers and everyday payments for utilities, airtime, data and cable TV.
Mr Kuponiyi noted that the campaign reflects a broader philosophy of accountability in digital finance, saying, “Nigerians have experienced inconsistency and unclear charges across various platforms in the past. With No Be Cho Cho Cho, we are saying clearly: don’t just listen to what we say; experience the proof.”
Smartcash operates as a PSB licensed by the Central Bank of Nigeria and is wholly owned by Airtel Nigeria, a part of the Airtel Africa Group, which operates across 14 countries. This backbone allows the platform to serve customers through both smartphone applications and USSD channels, enabling access for users without smartphones or traditional bank accounts.
Beyond consumer banking, the platform is also expanding its footprint through a nationwide network of agents that facilitate transactions and financial services in underserved communities.
Providing further insight into the bank’s financial architecture and long-term roadmap, Mr Kuponiyi emphasised that the campaign reflects the strength of the institution’s operational foundation.
“At Smartcash, we have matched our ambitious growth targets with disciplined investment in secure, high-volume processing capabilities. The No Be Cho Cho Cho initiative is a testament to our financial health and our unwavering focus on driving financial inclusion through sustainable incentives that provide real value to the Nigerian economy,” he said.
As part of the rollout, the No Be Cho Cho Cho campaign will run nationwide across television, radio, outdoor advertising and digital platforms, targeting young, mobile-first consumers while also reaching traders and small businesses through agent networks and USSD channels.
For Smartcash, the campaign marks more than a marketing refresh; it signals an attempt to redefine how financial technology companies communicate with Nigerian consumers in an increasingly competitive sector.
As Kuponiyi concluded at the launch: “The evidence is plenty. Nigerians can see it for themselves.”
By Adedapo Adesanya
The Senate has called for a strengthened regulatory framework that positions the Central Bank of Nigeria (CBN) at the centre of oversight of the country’s fast-growing fintech sector.
The recommendation was made by Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions, Mr Adetokunbo Abiru, during a one-day public hearing at the National Assembly complex on Wednesday.
The event focused on the proposed amendment to the Banks and Other Financial Institutions Act (BOFIA) 2020 (SB. 959) and included an investigative session into fraudulent investment platforms, notably the recent Crypto Bullion Exchange (CBEX) incident.
Mr Abiru, who is a former Group Managing Director of Polaris Bank and Executive Director at First Bank Nigeria, emphasised that fintechs, including mobile money operators, digital lenders, payment platforms, and settlement companies, have become systemically important to Nigeria’s financial ecosystem.
While their growth has expanded financial inclusion, existing laws, he said, do not fully address the scale, data sensitivity, and systemic impact of these technology-driven institutions.
“The question has arisen as to whether a new standalone regulatory agency would be preferable for supervising fintechs,” Mr Abiru said.
“However, creating a separate agency would duplicate functions, fragment oversight, and increase bureaucratic costs. It is far more effective to strengthen the BOFIA framework, modernise CBN supervisory powers, and mandate coordination with key agencies such as the Securities and Exchange Commission, Nigerian Communications Commission, Corporate Affairs Commission, Federal Competition and Consumer Protection Commission, and the Office of the National Security Adviser,” he added.
The lawmaker proposed that the amendment should explicitly empower the CBN to designate qualifying fintechs as Systemically Important Institutions, establish a national registry for transparency and beneficial ownership disclosure, and strengthen risk-based supervision tailored to technology-driven financial services.
Beyond fintech regulation, the Senate intensified scrutiny on Ponzi schemes and fraudulent investment platforms.
Mr Abiru described the rising prevalence of such schemes as a threat to financial stability and public trust, citing the CBEX debacle, which reportedly caused severe financial losses to individuals across Nigeria, including professionals, traders, students, and retirees.
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