Banking
The Transformative Benefits of Nigeria Going Cardless
By Uzoma Dozie
Thanks to changing lifestyles and the ubiquity of mobile phones, the number of people across Nigeria using mobile banking is rising exponentially. This is creating the opportunity to turn my vision of a cardless Nigeria into a reality.
By 2020 there will be 200 million smartphone connections in Africa (Guardian). In Nigeria, there are more mobile phone lines than adults, 16 smartphones are sold every minute and 24% of people already have access to mobile broadband (GSMA).
Mobile technology, mobile payments, and therefore cardless payments are already becoming a way of life for millions of people. Digital banking technology is moving beyond payments, as it is now possible to open a bank account, create savings plans and conduct other transactions using a mobile device.
Traditionally, the progression is as follows: cash-using customers become cashless as they switch to using cards, and then become cardless as they switch to using their mobile for all financial transactions. However, technological developments – in particular the growing use of mobile – have presented Nigeria with a unique opportunity to leapfrog straight from cash to cardless.
There are however great challenges to overcome. In Nigeria, 80% of payments are still made in cash. Diamond Bank is at the forefront of modernising payments with 89% of our transactions now cashless – up from 67% in July 2016. Steps are being taken in the right direction, and technological innovation can really propel this transformation forward.
Going cardless is well suited to the realities of Nigeria’s economy and geography, with over 50% of the population living in rural communities (World Bank) where infrastructure is often minimal. Customers are more likely to have access to a mobile phone than proximity to a physical branch, meaning electronic payments are better suited to the population.
The leap to a cardless society will have life-changing ramifications for rural Nigerians. For example, in Diamond Bank’s partnership with MTN, over nine million customers have opened a bank account on their mobile phone simply by dialling a shortcode. Opening an account no longer requires a branch – it only needs a phone signal, which covers 99% of Nigeria.
Cardless banking will also enable these communities to become more economically active. With access to finance at their fingertips, mobile banking will allow individuals and SMEs to unlock their full financial potential. It will promote financial inclusion of a population that are typically under-banked or completely unbanked. It will also act as a springboard for them undertaking further financial transactions, boosting financial literacy.
Using cardlesss technology to reach remote communities should be a key priority for Nigeria’s banks. Doing so is a win-win situation; not only does it ensure more people are banked, it ensures more people are part of the formal economy. This will create jobs and revenue – necessary for the development of healthcare, education and some other key national infrastructure.
Going cardless will also give people access to financial products on-the-go. This improves the customer experience, as in a cardless economy people can make a range of payments anywhere and on a 24/7 basis, spending less time at ATMs and branches and more time generating commerce or with families.
Further down the line, you might ask: what comes after Nigeria goes cardless? We see the future of financial services as increasingly digitalised. Touch fingerprint recognition, as used on the Diamond Mobile app, and developments with retina technology have the potential to make banking easier for customers. Fraud could even be pre-empted, as the technology and service becomes more personalised to the individual or business. We are even exploring the potential role of virtual reality in our branches.
Nigeria is becoming more mobile and digital. It is now up to the financial services sector to respond to this technological revolution and challenge the norms to make way for a truly cardless future. Banks, supported by the Fintech industry, have the capacity to drive this enormous change.
I believe a cardless economy can transform Nigeria from the bottom up.
Uzoma Dozie is the CEO of Diamond Bank Plc
By Adedapo Adesanya
Access Bank Plc, the banking subsidiary of Access Holdings Plc, has entered into a binding agreement with South African-based Bidvest Group Limited for the acquisition of 100 per cent equity stake in Bidvest Bank Limited.
The deal for the 24-year-old South African lender is due to be completed in the second half of 2025, upon regulatory approval.
This shows Access Bank’s further expansion plans in line with goals set by its late founder, Mr Herbert Wigwe.
The agreement to acquire 100 percent stake in Bidvest Bank reflects Access Bank’s commitment to strengthening its footprint in South Africa and consolidating on its position as the continent’s gateway to global markets as it seeks to optimise the benefits of recent acquisitions and accelerate its transition towards a greater focus on efficiencies.
Bidvest Bank, founded in 2000 is a niche and profitable South African financial institution providing a diverse range of services, including corporate and business banking solutions and diverse retail banking products.
As of its year ended June 2024, Bidvest Bank reported total assets equivalent of $665million and audited profit before tax of $20million.
Upon conclusion of this acquisition, Bidvest Bank will be merged with the bank’s existing South African subsidiary to create an enlarged platform to anchor the regional growth strategy for the SADC region.
This is coming just as the bank opened a new branch in Malta as part of efforts to focus on international trade finance after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
The Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
By Modupe Gbadeyanka
To strengthen Europe-Africa trade ties, Access Bank has opened a new branch in Malta. It will focus on international trade finance, employing approximately 30 people in its initial phase, with plans for controlled expansion over time.
It was learned that this Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
Access Bank Malta Limited commenced operations after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
Malta, a renowned international financial centre, and a gateway between the two continents, is strategically positioned to play a pivotal role in advancing commerce and fostering economic partnerships.
This strategic expansion into Malta enables The Access Bank UK Limited to leverage growing trade opportunities between Europe and Africa.
It underscores the organisation’s commitment to driving global trade, financial integration, and supporting businesses across these regions.
“By establishing operations in Malta, we will gain a foothold in a market that bridges European and North African economies, moving us one step closer to our goal of becoming Africa’s Gateway to the World.
“It further enhances our bank’s capacity to support clients with innovative solutions tailored to cross-border trade and investment opportunities,” the chief executive of Access Bank, Mr Roosevelt Ogbonna, stated.
“Europe has emerged as Africa’s leading trading partner, driven by initiatives such as the Economic Partnership Agreements between the EU and African regions and the African Continental Free Trade Area (AfCFTA).
“With Europe-Africa economic relations entering a new phase, The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets,” the chief executive of Access Bank UK, Mr Jamie Simmonds, commented.
Also speaking, the chief executive of Access Bank Malta, Renald Theuma, said, “Malta is uniquely positioned as a bridge between Europe and Africa, making it an ideal location for our subsidiary. This move allows The Access Bank Malta Limited to engage more closely with customers in Europe and deliver tailored financial solutions that drive growth and connectivity across both continents.”
By Adedapo Adesanya
The International Finance Corporation (IFC) and Goldman Sachs have announced a new partnership with African banks, including Nigeria’s Zenith Bank and Stanbic IBTC Nigeria to support the Goldman Sachs 10,000 Women initiative, a joint programme launched in 2008 to provide access to capital and training for women entrepreneurs globally.
The two Nigerian banks are part of nine financial institutions from across Africa which have agreed to join the 10,000 Women initiative committing to leverage the business education and skills tools the programme provides to create more opportunities for women entrepreneurs across the continent by providing access to business education.
Others banks include Stanbic Bank Kenya, Ecobank Kenya, Ecobank Cote d’Ivoire, Equity Bank Group, Banco Millenium Atlantico – Angola, Baobab Group, and Orange Bank.
Speaking on this, Ms Charlotte Keenan, Managing Director at Goldman Sachs said – “10,000 Women has had a powerful impact to date, but we know that there are more women to reach and more potential to be realized.
“We are delighted to partner with IFC to supercharge the growth of women-owned businesses across Africa, and mainstream lending to female business leaders. We remain committed to supporting entrepreneurs with the access to education and capital that they need to scale.”
Since 2008, the 10,000 Women initiative has provided access to capital and business training to more than 200,000 women in 150 countries.
“This expanded initiative marks a significant step forward in creating equitable economic opportunities for women in Africa, enabling them to build stronger, more resilient businesses and to realize their entrepreneurial goals,” said Ms Nathalie Kouassi Akon, IFC’s Global Director for Gender and Economic Inclusion.
Goldman Sachs’ 10,000 Women initiative complements the Women Entrepreneurs Opportunity Facility (WEOF), launched in 2014 by Goldman Sachs and IFC as the first-of-its-kind global facility dedicated to expanding access to capital for women entrepreneurs in emerging markets.
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