The Nigeria Deposit Insurance Corporation (NDIC) has created a Single Customer View (SCV) platform that will be deployed to microfinance banks to avoid delays in depositor reimbursement in the event of a bank failure.
Mr Bello Hassan, the corporation’s Chief Executive, revealed this during a visit by the National Association of Microfinance Banks (NAMB) to Abuja, according to Nuhu, the Director, Communication and Public Affairs Department of NDIC.
Hassan explained that the SCV platform was implemented to reinforce the corporation’s processes in the event that the Central Bank of Nigeria revoked a failed MFB’s license (CBN).
What they are saying
The platform, Hassan said, would ensure that MFBs send quality, timely, and comprehensive depositor data to the NDIC.
The platform, he claims, would also provide a complete picture of depositors’ data at any given time.
According to Hassan, this would go a long way toward ensuring rapid payment in the event of a bank failure. He did say, though, that the company will share the platform’s template with the association in order to get further feedback on how to improve the invention.
Hassan charged the association to promote the adoption of sound risk management practices, stressing that it was key to the maintenance of safe and sound MFBs sub-sector.
What you should know
- The Nigeria Deposit Insurance Corporation (NDIC) stated that over 97 per cent of depositors at deposit money banks (DMBs) in the country would be completely protected by the N500,000 Maximum Insured Limit.
- The total number of accounts in deposit money banks in 2016, 2017, 2018, and 2019 was 83.0 million, 99.1 million, 112.0 million, and 128.4 million, respectively, with the NDIC’s N500,000 Maximum Insured Limit (MIL) fully covering 99.4%, 97.6 %, 97.5%, and 97.6% of accounts, respectively.
- As of June 30, 2021, the Nigeria Deposit Insurance Corporation (NDIC) had paid a total of N101.67 billion in uninsured sums to depositors of failed banks
It will enhance confidence in microfinance sub-sector