Business
Tokenization and next generation banking
August24news.com
Sponsored by: H&H
In the unfortunate instances where a customer had a complaint, that could only be resolved in the bank branch where (s)he opened the account, a situation that compelled the account holder to travel long distances to consummate banking transactions.
To access bank loans as an individual or a business was an arduous task which could take weeks or even months.
Banking was both cumbersome and frustrating. As a result, people preferred to transact in cash. And many, wary of the challenges associated with running a bank account, chose not to open accounts and were happy to perform all their financial transactions in cash.
Fast forward to the present and the transformation in banking is nothing short of mind blowing. “So much has changed in the African payments landscape,” Mitchell Elegbe, Founder/Group Chief Executive Officer, Interswitch, says. Advancement in technology has totally transformed banking, financial transactions, and the user experience. Today, banking, or financial transactions are largely both seamless and fun, riding on the innovative infrastructure built for real-time online payment. “Twenty years ago, we built real-time online payment infrastructure that the industry has leveraged,” says Jonah Adams, Managing Director, Digital Infrastructure and Managed Services, Interswitch Systegra.
Indeed, with Interswitch’s position as a bellwether in payment infrastructure, and the continued innovation by the company and others, everyday banking transactions like account opening, payment for goods and services, checking of account balance, funds transfer, and accessing loans are now performed in minutes and from the comfort of the home, office, or even on the go. An individual or a business can access bank loans in millions of Naira within minutes, using only a smart phone.
Owing to the ease and convenience the digital channels offer, there has been a marked uptake of these channels. Data on electronic transactions released by the Nigeria Inter-Bank Settlement System (NIBSS) for the first seven months of 2022 showed that e-transactions rose to N210.08 trillion, an increase of about 41% over the N149.36 trillion achieved in the corresponding period of 2021. Over the past 10 years, this figure has continued to rise year-on-year.
The increasing need by bank customers for safety, convenience, and speed continues to push the envelope in banking innovation. Financial institutions are spending billions of Naira to strengthen their digital capabilities and ensure customer retention and growth. Forward thinking financial institutions have even introduced robotics to improve their operations and boost user experience.
It is clear that next generation banking or payment solutions will be heavily digital, driven by mobile wallet, account to account (A2A), cards, Buy Now Pay Later (BNPL), embedded payment, and real-time payment, among others. The 2022 Global Payments Innovation Jury report, produced by a group of industry leaders from around the world, including investors, regulators, and public policy organizations, agrees that analogue, cash-based banking or payment solutions are long dead, replaced by fully digital models.
“The market share of real time A2A and mobile money transactions is expected to increase steadily over the next five years…the card model in developed countries is going to be hard to shake,” says John Chaplin, Chairman, Global Payments Innovation Jury. The pandemic ensured that the last vestiges of cash transactions are gradually being erased. According to Harish Natarajan of the World Bank, “Worldwide account ownership has increased by 50 percent in the 10 years spanning 2011 to 2021, to reach 76 percent of the global population.” This growth, Natarajan said, is largely driven by “innovations in payment services notably mobile money.” In Nigeria, account ownership is 64%, data from the Central Bank of Nigeria showed.
Fraud, identity theft, cyberattacks, data compromise and loss, among others, are issues next generation banking will continue to contend with. Security and safety of funds and identity will drive the rate of adoption of digital banking or payment, which is why financial institutions must invest in cyber tools while regulators remain vigilant to protect retailers and bank customers.
Tokenization is one such cyber tool that is gaining prominence, becoming an increasingly popular way to protect data. For instance, the Reserve Bank of India, determined to protect customers’ sensitive information or data for debit or credit card transactions, issued tokenization guidelines for the country’s financial services industry.
Recently, Interswitch, in partnership with Providus Bank, Mastercard, and Thales, launched tokenization, “the first in West Africa and first in sub-Saharan Africa,” according to Jonah Adams, Managing Director, Digital Infrastructure and Managed Services (Interswitch Systegra). On the rationale for the introduction, Adams says, “Based on the capacity of tokenization, customers can achieve a level of core protection that is not available anywhere in the industry.” This will help build trust among customers. The benefits of tokenization are many. Among others, tokenization allows seamless, speedy, transparent, and safe financial transactions. With tokenization, online payments become stressless; the tedious card details customers had to input online become unnecessary. It enables financial institutions to cut down on cost of cards and machine production.
So, what exactly is tokenization and how does it work? Experts at Interswitch, Thales, Masterclass, and Providus Bank help provide clarity on these at the launch. Tokenization of payment cards is a process by which the sensitive 16-digit primary account number (PAN) on a customer’s credit or debit card is substituted by an algorithmically or randomly generated series of non-sensitive characters or token during payments to frustrate hackers and data thieves.
So, for instance, if a card with a 16-digit card PAN – ‘8796 5432 0165 7669, is used on a gateway that has tokenization software, a ‘fake’ random 16-digit alphanumeric ID is immediately generated with characters like ‘123D 7&F6 98Ui F45W’, to mask the original PAN. A hacker who tries to steal the payment card details will only see the fake ‘123D 7&F6 98Ui F45W’ token that is not connected to an individual or account and not the original PAN. Also, a new token is generated each time the customer uses his payment card with a compliant merchant. If a customer uses his card at compliant Merchant A, a token is generated and when he uses the same card at compliant Merchant B, another token is generated, and so on.
Babatunde Okufi, Group Head, Business Development at Interswitch, described tokenization as a tool that will help “futureproof” card payments. The global payment industry also believes this to be so. The Payment Card Industry Data Security Standard (PCI DSS) requires businesses that deal with payment card data to ensure compliance with strict cybersecurity requirements. One of PCI DSS’s allowed cybersecurity standards is tokenization.
Next generation banking will no doubt be digital. However, it would come with increasing cybersecurity challenges. The need for safe and secure banking and payment systems means the application of tokenization will find increasing relevance in the industry. It is expected, therefore, that other industry players will follow Interswitch’s lead and collaborate to protect customers and build trust and confidence in the industry.
Business
Fidelity Bank Supports Modupe Cole Memorial School, Lagos
Fidelity Bank Supports Modupe Cole Memorial School, Lagos
AJAGBE ADEYEMI TESLIM
SPONSORED BY: H&H
In continuation of its drive to alleviate the impact of economic hardship and suffering among indigent Nigerians, Fidelity Bank Plc recently donated food items to Modupe Cole Memorial Childcare and Treatment Home School in Akoka, Lagos.
CAPTION:
L- R. Tolulope Rojaiye, Team Member, Brand and Communications, Fidelity Bank Plc; Osho Olufunmilayo Bamidele, Vice Principal 2, Modupe Cole Memorial Childcare and Treatment Home School; and Victoria Mbonu, Class President, Intellect Nexus Inductee Class, Fidelity Bank Plc; during a Corporate Social Responsibility (CSR) donation event executed by Fidelity Bank at Modupe Cole Memorial Childcare and Treatment Home School, Akoka, Lagos recently.
The donation which aligns with the Bank’s Corporate Social Responsibility (CSR) pillars of education and health, was championed by the Intellect Nexus Class of 2024 under the Fidelity Helping Hands Program (FHHP). Through this initiative, Fidelity Bank staff identify community needs, raise funds to address them, and receive matching support from the bank to implement impactful projects.
Explaining the bank’s commitment to supporting its host communities, the Divisional Head, Brand and Communications Division, Fidelity Bank Plc, Dr. Meksley Nwagboh, noted that, “At Fidelity Bank, we recognise the symbiotic relationship we have with the communities where we operate. This informs our decision to not only provide our host communities with relevant financial services but to also impact them with developmental projects.
“We are inspired by the great work being done here at Modupe Cole Home School and our donation is a small token of appreciation for this as we aim to support the well-being of these exceptional children.”
On his part, the Vice Principal of the school, Mr. Isiaka Ajani, expressed gratitude for the bank’s consistent support noting that Fidelity Bank’s gesture is a huge encouragement to the school.
“We say thank you for the gift items that you have brought to us today, and this shows that we are not alone in the mission to provide care and education to children with special needs.
“This institution is a testament to the belief that there is ability in disability. We have children here who have passed common entrance examinations and gained admission into higher institutions despite their challenges. It is our mission to help them achieve their potential.
“The school had made effort to provide academic and vocational training programs in bead-making and hairdressing, and specialized care for residents with severe disabilities for its 476 residents, many of whom have been abandoned by their families.” He stated.
Fidelity Bank is a full-fledged customer commercial bank with over 8.3 million customers serviced across its 255 business offices in Nigeria and the United Kingdom as well as on digital banking channels.
The bank has won multiple local and international awards including the Export Finance Bank of the Year at the 2023 BusinessDay Banks and Other Financial Institutions (BAFI) Awards, the Best Payment Solution Provider Nigeria 2023 and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards; Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence 2023; and Best Domestic Private Bank in Nigeria by the Euromoney Global Private Banking Awards 2023.
Business
Access Bank to Host Pioneering Africa Trade Conference in Cape Town
Access Bank to Host Pioneering Africa Trade Conference in Cape Town
AJAGBE ADEYEMI TESLIM
SPONSORED BY: H&H
Access Bank PLC is set to host its first-ever Africa Trade Conference (ATC), a landmark event focused on advancing Africa’s economic transformation under the theme, ‘Empowering Africa Through Trade, Innovation, and Sustainable Growth’. Scheduled for March 12, 2025, in Cape Town, South Africa, the conference is poised to bring together the most influential voices in trade, finance, and policy to address the future of commerce across the continent.
With Africa’s trade finance gap estimated at $81 billion annually, the conference aims to tackle the systemic challenges hindering trade, particularly for SMEs and domestic firms. By fostering collaboration among key stakeholders, the Conference will explore innovative solutions, sustainable trade practices, and strategies for expanding African economies into global value chains.
Roosevelt Ogbonna, Group Managing Director/Chief Executive Officer, Access Bank PLC, emphasised the importance of the Africa Trade Conference, in addressing these pressing issues. “The Africa Trade Conference represents a crucial step in redefining Africa’s trade potential. By creating platforms for dialogue, innovation, and actionable solutions, Access Bank is enabling African businesses to connect and thrive in the global economy.”
Access Bank’s presence across 24 countries globally, including 16 in Africa, provides a unique advantage in facilitating inter- and intra-African trade. The Bank’s growing network positions it as a key player in addressing trade complexities and promoting inclusive growth across the continent.
Seyi Kumapayi, Executive Director, African Subsidiaries, Access Bank, highlighted the broader vision of the forum, saying, “The Africa Trade Conference is a platform to not only address Africa’s trade challenges, but to champion the continent’s opportunities. Through strategic partnerships, tailored financial solutions, built on the ethos of sustainability, we are paving the way for Africa’s businesses to take their place on the global stage.”
This flagship event will convene a distinguished line-up of seasoned speakers, and top executives from leading international banks, Development Finance Institutions (DFIs), and captains of industry in Africa.
The ATC will also shine a spotlight on the transformative potential of the Africa Continental Free Trade Area (AfCFTA), which aims to reduce trade barriers, enhance infrastructure, and integrate African economies into global trade networks.
Furthermore, the event will explore critical themes shaping the continent’s economic future, including the transformative role of digitisation and innovation in global trade, solutions for overcoming trade barriers to enhance market access, as well as sustainable trade practices and innovative financing models, thereby providing a comprehensive roadmap for advancing Africa’s position in global commerce. Please visit https://africatradeconference.accessbankplc.com/ for more information.
Business
Union Bank Rewards 360 Customers with N21 Million in First Save and Win Palli Promo 4 Draw
Union Bank Rewards 360 Customers with N21 Million in First Save and Win Palli Promo 4 Draw
AJAGBE ADEYEMI TESLIM
SPONSORED BY: H&H
Union Bank, Nigeria’s leading financial institution, has kicked off its Save and Win Palli Promo 4campaign on a high note following the announcement of its first set of winners in its inaugural monthly draws.
The first live draw of this season, which took place at the Bank’s Head Office in Marina, Lagos, rewarded 60 customers with ₦100,000 each. Additionally, 300 other winners went home with ₦50,000 worth of gift vouchers during the inaugural live draw, which was conducted transparently and digitally under the supervision of relevant regulatory bodies. The winners cut across the nation.
Speaking at the first monthly draw, Gloria Omereonye, Union Bank’s Area Business Executive for Lagos Island 1, stated, “Union Bank is always dedicated to rewarding customers for their loyalty and financial discipline.
We are pleased that our promo has continued to achieve its noble goals of providing succour to our customers through our gifts and rewards, especially in these economically trying times, while facilitating a sustainable savings culture for future goals and objectives.”
Save & Win Palli Promo is a nationwide campaign designed to reward both new and existing customers with cash prizes. Season 4, which began in December 2024 and runs until May 2025, offers customers the opportunity to win ₦131 million in cash prizes, Motorcycles, Tricycles, Fuel Vouchers, and a star prize of ₦5 million, which will be handed out to three lucky winners at the grand finale.
Open to new and existing customers, the Save and Win Palli Promo requires participants to save a minimum of ₦10,000 and perform a minimum of five transactions monthly to qualify for draws. Monthly winners can receive ₦100,000, while quarterly draws will reward lucky savers with Motorcycles, Tricycles, and other exciting prizes.
Customers who save in multiples of ₦10,000 will increase their chances of winning.
New customers can join the promo by downloading the UnionMobile app to open an account or visiting any Union Bank branch.
Existing customers can reactivate accounts by calling the 24-hour Contact Centre at 07007007000 or visiting a branch.
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