Global banks mull cash netting services

A new payment netting initiative for high value payments, known as Cash Netting Services (CNS),   is being assessed by eight leading global banks, according to the online publication, “Fineextra.com”. The report stated that CNS would help banks to reduce daily interbank payment flows significantly – and associated liquidity and capital management obligations, adding that eight banks were collaborating with the promoters of the initiative to gauge the size of the bilateral netting opportunity, and associated benefits in respect of improved cash and liquidity management practices and processes. It is estimated…

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Consumers ready to dump passwords –Visa

New forms of authentication, such as fingerprint, facial, and voice recognition, can make unlocking accounts and payments much easier and more convenient than traditional passwords or PINs – which are difficult to type onto tiny keyboards, easy to forget, and can be stolen, a new Visa survey of customers has found. “For financial institutions, the time has never been better to integrate biometric technology into banking apps and payments experiences for customers,” said Mark Nelsen, Senior Vice President of Risk and Authentication Products, Visa. “Visa is investing in the best…

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Global cybersecurity spending to hit $96bn in 2018

Firms say security breach is main factor influencing security spending International research and advisory firm, Gartner, is projecting that worldwide information security spending will total $96.3 bllion in 2018, an increase of eight per cent from 2017. The firm, which provides information technology related insight for IT and other business leaders located across the world, said in its latest report that  organisations were spending more on security as a result of regulations, shifting buyer mindset, awareness of emerging threats and the evolution to a digital business strategy. “Overall, a large…

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FG’s debt management strategy sparks concern over naira

There was a noticeable exit of some foreign funds from Nigeria’s currency market last week after treasury bills repayment by the Debt Management Office (DMO) and the Central Bank of Nigeria (CBN) pushed down yields. The development has triggered fears of naira weakness, writes TONY CHUKWUNYEM In line with the Federal Government’s strategy of reducing its debt and debt-servicing costs, the Debt Management Office (DMO) and the Central Bank of Nigeria (CBN) last week repaid significant volumes of treasury bills instead of the usual practice of rolling them over. The…

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Debt fears cast shadow on 2018 budget

President Muhammadu Buhari’s assurance that his administration will redress the debt service imbalance ratio in the 2018 budget through improved non-oil revenue generation drive and restructuring of the existing debt portfolio, does not seem to have quelled critics’ fears. TONY CHUKWUNYEM writes. Presenting the 2018 Budget proposal to the National Assembly last Tuesday, President Muhammadu Buhari said the administration was concerned that domestic debt currently accounted for about 79 per cent of the country’s total debt portfolio, adding that the government’s medium-term strategy was to reduce the domestic debt proportion…

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Fintechs, no threat to banks –McKinsey

Contrary to widespread opinion, the biggest threat for the banking sector is not fintechs, but non-banking companies such as Amazon and Alibaba, a recent report by McKinsey has stated. The study refers to these companies as “platform companies” and calls them the “new heavyweight competitor(s) in town,” for the banking sector.   Based on information gathered from McKinsey’s Panorama fintech database, which tracks more than 1,000 financial start-ups, the payments area is the fastest growing segment in which these “platform companies” are taking over. One example is Alibaba. The e-commerce…

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Shaikh: African banks must ‘adapt or die’

Chief Executive Officer of Anthemis – an investment and advisory firm focused on digital financial services, Nadeem Shaikh, has said banks have to get comfortable with the fact that they are good at some things and bad at others. Shaikh stated this during a panel discussion at the Mastercard Foundation’s 2017 symposium on financial inclusion in Accra last weekend.   Africa remains home to the largest proportion of unbanked people (estimated to be over 60per cent in sub-Saharan Africa at last count). As a result, the region has seen the…

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Benin is17th member of AFC

The Republic of Benin (Benin) has become the 17th member state of the Africa Finance Corporation (AFC), the Corporation said in a statement. According to the statement, Romuald Wadagni, Benin’s Minister of Economy & Finance, formally acceded to AFC membership by signing the Letter of Adherence on November, 7, 2017. Benin, therefore, joins the list of Francophone African States that are currently AFC member countries.   These include: Chad, Cote d’Ivoire, Djibouti, Gabon, Guinea-Bissau, and Guinea-Conakry. This development augurs well for the peaceful coastal nation, which serves as an economic…

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Forex gains boost Tier 1 banks’ market dominance

Central Bank of Nigeria

Leveraging on their larger volume of foreign currency deposits, Tier 1 banks in Nigeria have benefited from the depreciation of the naira, booking exchange gains that have enabled them post  impressive profits and extend their dominance over their Tier-2 counterparts.  TONY CHUKWUNYEM writes According to the Central Bank of Nigeria’s (CBN) Financial Stability Report (FSR) for the half year ended December 2016, the country’s five largest lenders (Tier 1 banks) maintained their dominance of activities in the banking industry in the second half of 2016. The CBN classifies lenders into…

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World Bank: Good governance, key for private investment

To ensure accountability, Nigeria has put details of its private, public partnerships (PPPs) on a website To close the finance gap in infrastructure development in Africa, the governance gap would have to be closed, the Vice President, global themes, at the World Bank Group, Hartwig Schafer, has said. “We need to design a strategic vision for infrastructure development in Africa, coordinate across all levels of government and procure with integrity,” he said at the First African Roundtable on Infrastructure Governance, which took place in South Africa last weekend. “Good governance…

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