Nigeria’s leading system integration company, CWG Plc, has announced the signing of a supply agreement with three commercial institutions in the country.
Adeshile Adekanbi, CWG’s Product Manager, noted that the agreement involves; a tier-1 bank, a commercial bank, and a microfinance bank. He further noted that new deal under the ATM as a service (AaaS) initiative of the company will enhance the competitiveness for customers satisfaction with banking operations in Nigeria with respect to ATM services.
According to him, the AaaS initiative of the company is to allow banks focus on their core competencies whilst allowing technology platform providers to drive their ATM businesses.
How this will help commercial banks in the country
The ATM as a Service (AaaS) model is the new wave around solution providers, with this model, commercial banks do not need to roll out huge CAPEX to procure an ATM, all that is required from the banks is for them to pay a subscription, which could be monthly or quarterly for them to make use of the ATM as a Service.
This is seen as a more secure way of doing business because it helps operational efficiency and realigns business roadmap in such a way that the banks are now more focused on the direction and organizational goals as agreed with their board.
What this means for the company
This new deal is expected to boost the bottom line of the ICT company that has witnessed a sharp downturn in revenue in the last 2 years. Although the board of the company noted that the reduction in earnings is as a result of losses incurred due to the financial cost implications of non-actualized projects which have adversely affected the company’s estimated earnings.
CWG Plc formerly Computer Warehouse Group Plc was incorporated in Nigeria as a Private limited liability company on 1 February 2005 and became a public limited liability company on 15 November 2013. The group is primarily engaged in the supply, installation, maintenance, and support of hardware, software, consultancy, communications and managed services.
The company’s share price is currently trading at N2.54 on the floor of the Nigerian Stock Exchange.