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
Access Bank Plc, KCB Group Complete National Bank of Kenya (NBK) Transaction
Access Bank Plc, KCB Group Complete National Bank of Kenya (NBK) Transaction
AJAGBE ADEYEMI TESLIM
SPONSORED BY: H&H
KCB Group PLC (KCB Group) and Access Bank PLC (Access Bank) have completed the sale of National Bank of Kenya Limited (NBK) to Access Bank Plc, marking the conclusion of a transaction that began in March 2024. This follows the receipt of all regulatory approvals customary for a transaction of this nature.
L-R: Seyi Kumapayi, Executive Director, African Subsidiaries, Access Bank PLC and Lawrence Kimathi, Director of Finance, KCB Group, during the signing ceremony to mark the completion of the sale of National Bank of Kenya to Access Bank PLC in Nairobi on Friday.
As a result, NBK, where KCB Group had 100% ownership, is now a wholly owned subsidiary of Access Bank Plc. NBK and Access Bank Kenya will continue to operate independently, pending the completion of all integration processes.
The acquisition is a pivotal step in Access Bank’s expansion strategy in East Africa. The combined entity will significantly enhance Access Bank’s presence in Kenya, strengthening the bank’s presence in the region. This move will allow Access Bank to offer an even more robust suite of banking services, catering to the evolving needs of individuals and businesses across Kenya.
Commenting on the completion of the transaction, Roosevelt Ogbonna, Managing Director/Chief Executive Officer of Access Bank Plc, said:
“Finalising this acquisition marks a significant step in our drive towards unlocking the vast potential of East Africa’s financial landscape. Kenya stands at the heart of regional commerce, and with NBK now part of the Access Bank family, are better positioned to leverage our combined strengths to deliver high-impact banking solutions to individuals, businesses, and government institutions alike.
“NBK’s heritage and local expertise, combined with our pan-African network and innovation-led approach, will enable us to serve as a stronger catalyst for economic growth. Our ambition is clear: to be the bridge that connects African businesses to global markets, fuel intra-African trade, and drive inclusive prosperity.
We are excited about what lies ahead as we lay the groundwork for a unified and more resilient banking presence in Kenya that empowers our customers and partners to thrive.”
The transaction reflects ongoing market developments to enhance the banking sector’s resilience.
KCB Group CEO Paul Russo said, “The completion of this transaction marks a significant milestone for KCB Group in our efforts to create and deliver value for our shareholders. We are confident the sale will unlock new opportunities for all the stakeholders.
KCB Group will work closely with Access Bank to ensure a smooth handover, operational transition and collaborate on customary transaction closure processes.
This includes finalising the transfer of systems and governance functions in line with regulatory guidelines and service level commitments.
“KCB Group will also continue to engage relevant stakeholders to ensure compliance and preserve customer confidence throughout the post-transaction integration period,” he added.
George Odhiambo, Managing Director of NBK, added, “NBK has a proud legacy of serving the public sector in Kenya, and this integration with Access Bank offers an exciting opportunity to build on that foundation.
Access Bank’s expertise across corporate, retail, and digital banking – combined with a strong public sector focus – will allow us to serve customers more comprehensively and extend our reach.”
With the legal transaction now completed, both institutions will begin the transition process to ensure a seamless integration. In the interim, customers will continue to access services through their existing banking channels – whether with NBK or Access Bank Kenya.
The immediate priority remains the alignment of operations, unification of teams, and harmonisation of product offerings as the banks move toward functioning as a single, consolidated entity.
Business
Hydrogen, Lagos State Touch Thousands of Business Owners with “Healthy Heart, Healthy Business” Outreach
Hydrogen, Lagos State Touch Thousands of Business Owners with “Healthy Heart, Healthy Business” Outreach
AJAGBE ADEYEMI TESLIM
SPONSORED BY: H&H
As part of its continued effort to support the growth and sustainability of Nigerian enterprises, Hydrogen Payment Services Company Limited joined forces with Ikeja Local Government Area and the Office of the Medical Officer of Health to deliver the impactful “Healthy Heart, Healthy Business” outreach on Wednesday, May 28, 2025, at the Ikeja Local Government Secretariat.
The initiative successfully engaged a wide range of business owners through a combination of in-person participation and extensive digital awareness campaigns.
Participants benefited from a comprehensive range of free medical screenings, including blood pressure checks, ECGs, malaria and typhoid testing, urinalysis, packed cell volume (PCV), blood sugar monitoring, and more, highlighting the critical connection between good health and business longevity.
Kemi Okusanya, CEO of Hydrogen, commented on the initiative, affirming Hydrogen’s passion for the growth of businesses.
“At Hydrogen, we are deeply committed to the success of Nigerian businesses. As a payment solutions provider, we recognise that healthy entrepreneurs build stronger, more resilient enterprises.
This outreach exemplifies our belief in supporting entrepreneurs beyond just payments.”
Demonstrating this responsibility, Hydrogen donated Sphygmomanometers and Glucometers to indigent and high-risk attendees unable to afford these essential health monitoring devices, empowering them to manage their health beyond the outreach.
Public-private partnerships (PPPs) have become increasingly important in driving sustainable development across various sectors.
By leveraging the unique strengths of both government institutions and private enterprises, PPPs enable more efficient delivery of services, innovation, and expanded reach.
These collaborations foster shared responsibility and resource pooling, making it possible to tackle complex challenges that neither sector could effectively address alone.
Dr. Tawak O.F., Medical Officer of Health for Ikeja, spoke on this, saying, “This partnership with Hydrogen Payment Services Company Limited exemplifies the power of effective public-private collaboration in reaching the heart of our business community.”
“Entrepreneurs often overlook their health while striving for success, but initiatives like this remind us all that good health is an essential part of wealth. We commend Hydrogen for their commitment to not just powering payments, but also powering healthier, more resilient businesses through impactful community engagement,” She added.
Mary, one of the beneficiaries and a merchant in ‘Computer Village’, expressed her gratitude, saying that, “Most of us don’t think about regular hospital checkups.
Mainly, because the cost is too high and some things now are not covered by insurance. Today, Hydrogen and Lagos State have brought doctors for free to our doorstep, and we are very grateful.”
Hydrogen’s full team presence at the event reaffirmed the company’s dedication to forging genuine relationships and standing firmly with the business communities it serves.
Business
Tunji-Ojo Calls for Innovation-Driven Public, Private Sector at Access Bank GLS
Tunji-Ojo Calls for Innovation-Driven Public, Private Sector at Access Bank GLS
AJAGBE ADEYEMI TESLIM
SPONSORED BY: H&H
Hon. Dr. Olubunmi Tunji-Ojo, Minister of Interior, delivered a compelling charge to public and private sector leaders at the Access Bank Guest Lecture Series (GLS) held on Friday at the Bank’s headquarters in Victoria Island, Lagos. Speaking on the theme “Dare to Dream, Dare to Innovate,” the Minister outlined a sweeping vision for innovation-driven governance, ethical leadership, and urgent reform in the country’s correctional system.
L-R: Kemi Nanna Nandap, Comptroller General of Immigration; Paul Usoro (SAN), Chairman, Access Bank Plc; Olubunmi Tunji-Ojo, Honourable Minister of Interior; Aigboje Aig-Imoukhuede, Chairman Access Holdings Plc; Bolaji Agbede, Acting Group Chief Executive Officer, Access Holdings Plc; and Roosevelt Ogbonna, Managing Director/Chief Executive Officer, Access Bank Plc, at Access Tower, Victoria Island, during the Guest Lecture Series hosted by Access Bank in Lagos… recently.
In his keynote address, Tunji-Ojo drew on his background as an ethical hacker to illustrate how great leadership, like in cybersecurity, must be proactive, identifying and fixing vulnerabilities before they become crises. “Leadership is not about reacting to problems, it is about foreseeing and solving them before they occur,” he said. “And for that, you must always ask: What is your purpose? How will you execute it? And when is the right time to act?”
Dr. Tunji-Ojo showcased the transformation underway at the Ministry of Interior since he took office, including the clearance of a backlog of over 200,000 unprocessed passport applications and the elimination of ₦28 billion in legacy debt. These achievements, he noted, were realised without additional financial aid from the federal government. Instead, the Ministry deployed a strategy built on system integration, technology innovation, and financial self-sufficiency.
Among the innovations highlighted were the rollout of e-visa platforms, contactless passport renewals for Nigerians in the diaspora, advanced passenger information systems, and the commissioning of a Tier-4 data centre to support round-the-clock immigration services.
In one of the most resonant moments of the event, the Minister spoke passionately about the broken state of Nigeria’s correctional system. He revealed that over 4,000 inmates were being held in custodial centres nationwide simply because they could not afford to pay fines as low as ₦50,000. “This is not a legal crisis, it is a moral one,” he declared. “A society that punishes poverty more harshly than crime has lost its moral compass.”
Dr. Tunji-Ojo explained that the Ministry has since partnered with private donors to secure the release of many of these non-violent offenders and is now pursuing structural reforms that prioritise rehabilitation over punishment.
These include digital case tracking to prevent indefinite detention, vocational training programmes within correctional centres, and public-private partnerships aimed at improving living conditions and operational efficiency. “A correctional facility must correct, not condemn,” he said. “Justice without dignity is injustice in disguise.”
Aigboje Aig-Imoukhuede, Chairman of Access Holdings PLC, who welcomed the Minister to the lecture series, praised his clarity of vision and decisive leadership. “What Dr. Tunji-Ojo has demonstrated is that innovation is not about big budgets, it is about big thinking,” Aig-Imoukhuede said. “His approach to public service reflects the same DNA of impact and excellence that defines Access Group.”
Aig-Imoukhuede noted that the Guest Lecture Series was designed to deepen the conversation around leadership, accountability, and service. “We cannot build the Nigeria we want without leaders who understand systems, value people, and are committed to sustainable change.
Today’s conversation has shown us what that looks like in action.”
The event brought together executives, policymakers, and thought leaders from across the country, reinforcing Access Bank’s role as not only a financial powerhouse but also a platform for national transformation through dialogue, vision, and collaboration.
In his final message, Tunji-Ojo encouraged participants to embrace a personal philosophy of excellence and purpose. “Let Access Bank not just be a financial institution, let it be a philosophy,” he said. “Let Nigeria not just be a country of potential, let it be a nation of performance. It is time to refine our genius, not just export it.”
-
News7 years agoBreaking: ‘Penalty’ Crooner Small Doctor Caught in Possession of Fire Arms
-
News6 years agoPDP Set To Cause Panic Days To Polls: FG
-
News6 years agoINEC Engages EFCC, FIU In Tracking Campaign Funding
-
News7 years agoTiffany Trump Is Dating a Millionaire Michael Boulos From Nigeria
-
Politics6 years agoPDP Alleges Plot by APC, Presidency to Detain Its Leaders
-
Politics6 years agoOsinbajo Has Betrayed Yorubas, Says Afenifere
-
Politics6 years agoMuslim-Muslim Ticket: I Am Proud Of My Role In Stopping Tinubu – Saraki
-
Politics3 years ago
Jandor appoints Olajumoke Olatunji as Special Assistant on Media