Nigeria: Microfinance Banks Benefit from Fintech Advantage

Jul 2017
Nigeria, July, 18 2017 - Nigeria’s financial sector will continue to experience growth with technology, especially as Inlaks, a foremost Financial Technology (Fintech) solutions provider has now partnered with the Central Bank of Nigeria (CBN) to deploy a single core and agent banking solution for almost 1000 Microfinance Banks (MFBs) in Nigeria.

The project which they say will be implemented as the National Association of Microfinance Banks Unified IT Platform (NAMBUIT) starting from this month, July 2017.

Femi Adeoti, Managing Director, Inlaks, who revealed that the pilot will include selected unit, state and national Microfinance Banks said also, that the company is well positioned to handle the project based on its wealth of experience in handling similar projects across West Africa.

According to the company, this particular project is aimed, among others, at deepening financial inclusion in the country and bringing about better regulatory framework for the MFBs. In addition, the project will also facilitate on-boarding of the MFBs into the national payment system and significantly lower the operating costs of the MFBs by providing robust Core and Agent banking solutions for branchless banking.

Currently, Information Technology (IT) cost is a significant portion of the operating expenses of the MFBs and this significantly impacts their Operational Self Sufficiency (OSS). The project is therefore expected to deepen collaboration within the microfinance community and spur significant growth in the sector by improving access to accurate and timely operational and financial reports for prompt decision making.

NAMBUIT is an institutional collaboration among CBN, Inlaks and The National Association of Microfinance Banks (NAMB).

According to Adedeji Adesemoye of the CBN’s Other Financial Institution Supervision Department (OFISD), NAMBUIT on completion of the project will deliver numerous gains to the industry especially at this significant level of the economy through financial access, inclusion and sustainability of the microfinance institutions on value chain financing and growth of the small and medium scale enterprises.

Source : Business Day

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