Economy
Best Way to Empower Unbanked is Through Tech
By Uzoma Dozie
One of the greatest examples of the empowering nature of technology has been the meteoric rise of mobile banking across Africa.
It is no exaggeration to say that mobile banking has revolutionized the way financial transactions are made across the continent and that for millions of people it has positively transformed their ability to conduct business and their everyday lives. But this is only the tip of the iceberg.
Looking specifically at Nigeria and its ever-growing population of over 182 million people, we still have huge numbers of people who have limited or no access to convenient banking. If you think a bricks and mortar branch-led strategy is going to be the way to bring these people into the formal economy, then, in my view, you will fail.
Instead, it is only by creating digital infrastructure that the banking industry can scale rapidly enough to support the needs of those currently left out. Moreover, following changing lifestyles, Nigerians are some of the most digitally advanced consumers on the planet.
Therefore, when financial service firms think about the Nigerian market, they absolutely must provide a fully integrated, seamless digital offering. Failure to do so will only jar with the prevailing zeitgeist.
What is exciting is the potential ecosystem the digital infrastructure can help create. Through an integrated digital platform, consumers can access bundled services and products from multiple partners best suited to facilitating their lifestyle.
For example, through Diamond Mobile, our customers can manage their finances, search and book international and local flights, as well as purchase movie tickets, and this is only the start of what can become an even more integrated and far-reaching platform. It’s also the start of a concept that I call ‘Beyond Banking’.
China’s Wechat – an instant messaging service which allows online banking – is a powerful example of what the possibilities are when it comes to an integrated ecosystem. It is also a sign of the times that the CEO of a bank should be talking about the business model of a company that is seen as far removed from the traditional banking model, but I think this is the future and the start of a new category altogether.
Of course, a key element to making sure the most valuable and consumer-centric proposition is developed and brought to market, is through the use of data. By analysing the behaviour of consumers’ digital interactions and their financial transactions, banks can build a detailed picture.
This valuable insight can then help banks build the most appropriate infrastructure required to best support consumers’ needs. Clearly, as the digital revolution unfolds there will be legitimate questions about data security and privacy that will need to be answered, but I don’t see these risks, as real as they are, as insurmountable.
Additionally, the digitisation of banking also provides much greater transparency and an audit trail throughout more of the economy, from individuals through to the largest international institutions. Any measures that improve financial transparency must surely be a good thing.
Ultimately, notwithstanding the obvious short-term economic challenges, as a country thriving with innovation and opportunity, these are hugely exciting times for everyone in Nigeria. Similarly, whilst Nigerian banks are facing their own pressures in the short term, I believe the future success of Nigerian banking will be built upon the twin foundations of technology and innovation.
As many of you will know, I am a huge believer in the power of technology and innovation to drive improvement and positive changes. From greater efficiency for business operations, through to a better consumer experience; when harnessed effectively, technology has the ability make a material difference to everyone’s daily life. This notion is no more accurate than in the world of banking.
Culled from: Africa business Magazine
By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has cut the interest rate by 50 basis points to 26.50 per cent from 27 per cent.
Nigeria’s apex bank announced this during its two-day 304th Monetary Policy Committee (MPC) meeting, which concluded on Tuesday in Abuja.
This comes after the country’s interest rate cooled in January to 15.10 per cent from 15.15 per cent, according to the National Bureau of Statistics (NBS), strengthening the case for a reduction.
The CBN Governor, Mr Yemi Cardoso, said all members of the MPC unanimously agreed upon the decision.
“The committee decided to reduce the monetary policy rate by 50 basis points to 26.50 per cent,” he said.
Mr Cardoso stated that the liquidity ratio was maintained at 30 per cent, and the standing facilities corridor was adjusted to +50 to -450 basis points around the monetary policy rate.
He said the committee retained the Cash Reserve Ratio (CRR) at 45 per cent for commercial banks and 16 per cent for merchant banks, while the 75 per cent CRR on non-TSA public sector deposits was equally maintained.
The CBN uses the MPR, which works as the benchmark interest rate, to manage inflation, macroeconomic stability, and liquidity.
Last November, the MPC retained the Monetary Policy Rate (MPR) at 27.00 per cent. The last time the apex bank cut interest rates was in September last year, to 27 per cent from 27.50 per cent after a series of easing in inflation.
Market analysts had argued for higher interest cuts due to results seen in the CBN’s inflation targeting framework. Meanwhile, some say the 50 basis points reduction will offer a temporary reprieve as inflation heads for a single-digit target in the coming months.
By Adedapo Adesanya
A cross-border payments solutions company, Grey has expanded its business banking platform to include US Dollar corporate accounts, bulk international payments, and USDC stablecoin support, all integrated into a single system.
The company is positioning itself as a low-cost, faster alternative to traditional international banking, particularly for businesses in emerging markets as it enables companies to open US Dollar accounts, receive global payments, and send payouts to 170+ countries, including bulk transfers, within minutes.
Grey aims to solve common cross-border payment challenges, particularly the high transfer costs that often range between 6 and 7 per cent of transaction value, prolonged settlement cycles that can stretch across several days, and the limited access many businesses face when trying to open and operate foreign currency accounts. In addition, companies frequently contend with hidden intermediary fees and poor foreign exchange transparency, both of which undermine cost predictability and effective cash flow management.
By integrating USD business accounts and USDC stablecoin functionality into its platform, Grey enhances its value proposition around faster settlement, clearer pricing structures, improved cost efficiency, and broader global accessibility. The expanded capabilities enable businesses to manage international transactions with greater speed, transparency, and operational control.
“Businesses may operate without borders today, but access to reliable global banking remains uneven, particularly for companies in high-growth markets,” said Mr Idorenyin Obong, Co-founder and Chief Executive Officer of Grey. “We’re closing that gap and enabling businesses to move money faster, with greater transparency and control, wherever their clients or partners are based.”
“When payments are delayed, or costs are unpredictable, growth stalls,” added Mr Joseph Femi Aghedo, Chief Operating Officer and Co-founder of Grey. “Grey eliminates those friction points, giving businesses a faster, simpler way to manage payroll, supplier payments, and partner payouts across borders. Adding USD and stablecoin capabilities makes these benefits accessible to even more customers.”
Established in Africa in 2020, Grey has a presence in key markets, including the United States, the United Kingdom, and Europe, and has recently expanded its services and operations into Latin America and Southeast Asia.
Since its inception, the company has consistently enhanced its services to empower digital nomads worldwide, regardless of location. Grey’s offerings include multi-currency accounts, low-cost international money transfers, a virtual USD card, expense management tools, and robust security measures.
By Aduragbemi Omiyale
A partnership designed to expand access to stablecoins and on-chain financial opportunities for everyday users and businesses has been entered into between Quidax and Lisk.
The partnership provides a critical gateway for the developer community, as builders on the Lisk network can now leverage Quidax’s robust digital asset infrastructure to access stablecoins and local currencies at competitive rates.
This institutional-grade infrastructure is designed to power “future-forward” financial products, ranging from neobanks and cross-border payment platforms to regional exchanges and global fintech solutions. It will also allow Quidax customers to trade and move value seamlessly using USDT, USDC, LSK, and Ether (ETH) on the Lisk network.
The collaboration will also accelerate the adoption of Web3 solutions that solve real-world financial challenges for millions of customers across Africa by combining Quidax’s deep local liquidity and compliant framework with Lisk’s scalable L2 technology.
In 2024, Quidax became the first crypto exchange to receive a provisional operating license from Nigeria’s Securities and Exchange Commission (SEC).
“The partnership with Lisk enables us to extend our platform to serve more people and cater to the increasing demand from products and services that want to integrate our stablecoin and digital assets product to build products across Africa,” the Chief Infrastructure Officer at Quidax, Mr Morris Ebieroma, said.
Also commenting, the Ecosystem Lead for Africa at Lisk, Ms Chidubem Emelumadu, said, “Africa represents one of the most critical frontiers for blockchain innovation, where the demand for reliable and inclusive financial tools is urgent.
“Our partnership with Quidax expands access to stablecoins and on-chain financial opportunities for everyday users and businesses. At the same time, it gives founders building on Lisk the critical infrastructure they need to create solutions that can scale meaningfully across the continent,” she added.
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