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Business News

Traditional banks make a play for Nigerian Fintechs- GTB the pioneers

Segun Agbaje, the CEO of GTB, announced that the institution was aiming at developing fintech products and building out its payments and fintech arms.

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Coronavirus: Nigerian banks advise customers against visiting banking hall for transactions, Traditional banks make a play for Nigerian Fintechs- GTB the pioneers

Segun Agbaje, the CEO of Guaranty Trust Bank (GTB), one of the leading banks in Nigeria, announced recently that the institution was aiming at developing fintech products and building out its payments and fintech arms.

GTBank operates and aggressively promotes different digital products like digital lending (Quick Credit), payments (GTPay) etc. arguably positioning itself as the most advanced traditional institution competing against Nigerian fintechs.

QuickCredit has gained traction over time and is one product that is positioned as a competitor with other fintechs. However, Agbaje said the focus is more on its payment business (paywall), seeing it has been estimated that the payment market could grow between $20 billion and $40 billion in the next few years with 30% of banking income at risk. GTB will also scale up its super app, Habari.

All in all, GTBank is making a strong move into the Nigerian Fintech space and it appears successful. The question is, will this be the foremost step to a trend where traditional banks could overtake fintechs? Some indications to consider:

[READ MORE: Smartphones that track virus spread: This could really make a difference)

  • GTBank has always been considered a leading traditional player. An instance was the popularity it garnered with USSD codes (737) that resulted in other banks following suit.
  • Traditional banks will fight to stay relevant and so have been deliberate in unleashing the potential of fintech offerings, mostly through partnerships.
  • These banks are aware of changing times, so innovation has become the order of the day. However, a move like this could increase exposure to unintended risks.
  • This could alter the dynamics of the fintech space as most traditional players have the revenue to move with speed and become real contenders.
  • A bank that can successfully position itself as a fintech will win over customers with ease, as customers will always be drawn to where they can get the most value offerings.
  • Are traditional banks and fintechs held to the same regulatory standards? Failing to comply with regulators like CBN puts these banks at risk of paying some hefty fees and legal penalties.

WATCH: Nairametrics Tech Roundup on remote work, branchless banking and other trending developments

It is important for banks to foster a culture of compliance and also invest in regulatory technology, so they are not caught unprepared. Fact is, it is much easier for banks to evolve and produce fintech products than it is for fintechs to become banks in spite of the growing acceptance of technology solutions. The vast majority of the Nigerian population still prefer to deal with brick and mortar banks.

Article written by TechRound up

Nairametrics frequently publishes articles from experts such as financial analysts, economists, researchers and investors. We also feature articles from guest writers and bloggers who wish to push their views and opinions through our platform.To get your articles on Nairametrics, kindly send an email to [email protected] and we will publish it within 24 hours of approval by our editorial team.

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    Spotlight Stories

    Tip Jar, Twitter’s new giveaway feature that lets users send money to you

    Twitter has introduced a new feature called Tip Jar that allows you send money to your favourite tweeters.

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    US Elections: Twitter, Facebook suspend several news accounts

    Twitter has introduced a new feature called Tip Jar that allows you send money to your favourite tweeters.

    According to the blog post, “Tip Jar is an easy way to support the incredible voices that make up the conversation on Twitter. This is a first step in our work to create new ways for people to receive and show support on Twitter – with money.”

    The new feature utilizes different payment platforms like PayPal, Venmo, Patreon, CashApp, and others.

    Users can link their Twitter accounts with Tip Jar to any of these payment providers. Twitter takes no cut.

    READ: Facebook is creating an audio chat product similar to Clubhouse

    You’ll know an account’s Tip Jar is enabled if you see a Tip Jar icon next to the Follow button on their profile page. Tap the icon, and you’ll see a list of payment services or platforms that the account has enabled. Select whichever payment service or platform you prefer and you’ll be taken off Twitter to the selected app where you can show your support in the amount you choose.

    Twitter has released series of features this year as part of its efforts to grow Twitter’s user base to 315 million daily active users by the end of 2023.

    The company also launched Twitter crop where images don’t get crop again on Twitter for Android or iOS. Standard aspect ratio images (16:9 and 4:3) will now display in full without any cropping and images will look just like they did when you shot them.

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    READ: Does YouTube stand a chance against TikTok?

    Lauren Alexander, a Twitter spokesperson said, “Today’s launch is a direct result of the feedback people shared with us last year that the way our algorithm cropped images wasn’t equitable, The new way of presenting images decreases the platform’s reliance on automatic, machine learning-based image cropping.”

    Twitter has tested several features and more will be rolled out soon.

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    Business

    Customs Apapa Command generates revenue of N65.4 billion in April

    This indicates a 64% increase in collection and an unprecedented record that has never been achieved in the history of Apapa Area Command.

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    Border closure: Amid N5bn daily revenue, Customs officials lament allowance slash  

    The Nigerian Customs Service (NCS) Apapa Area Command has announced a revenue of N65,463,398,355.85 for the month of April—an increase of N25,585,561,139.92 compared to the same period last year.

    This was disclosed by Comptroller Ibrahim Yusuf, Area Controller of Apapa command, in a press briefing on Thursday.

    What Ibrahim Yusuf is saying

    “This indicates a 64% increase in collection and an unprecedented record that has never been achieved in the history of Apapa Area Command.

    In line with the provision of extant laws, trade guidelines, and enforcement of government fiscal policy measures, the command was able to further strengthen its anti-smuggling operations against economic saboteurs through credible intelligence-driven operations.

    READ: Customs revenue rises by N200 billion to hit N1.5 trillion in 2020

    This led to the seizure of 4×40 feet containers laden with unregistered pharmaceuticals (674 cartons of tramadol tablets in 225mg and 120mg, and 805 cartons of codeine syrup in 100ml) at APMT and SIFAX 3 bonded terminal respectively.

    Other items seized in the period under review include: two containers of unprocessed wood and one container of scrap copper wire,” he said.

    He added that the progress the Apapa Command made in the month of April was possible due to the resilience of the officers, citing that the Command had taken steps to ensure efficient revenue collection by creating an enabling environment for legitimate businesses to thrive.

    What you should know

    Recall Nairametrics reported that the Nigeria Customs Service (NCS) Apapa Command stated earlier that it generated a revenue of N159.58 billion in the first quarter of 2021.

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