The Central Bank of Nigeria (CBN) is considering raising the capital base for Financial Technology firms (Fintechs) as the market share controlled by the payment platforms begin to expand.
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CBN Director, Payment System Management Department, Musa Jimoh, who made this known during an event tagged ‘Collaborating for Industry Growth and Profitability’ organised by Interswitch.
The CBN has set capital benchmarks for firms involved financial technology and payment at N2 billion.
Those in the top category, dealing with switching and processing, as well as mobile money, will have a N2 billion shareholders’ funds unimpaired by losses, the regulator announced.
Some of the Fintechs are involved in switching and processing, mobile money, Payment Solution Services (PSS), Payment Terminal Service Provider(PTSP), Payment Solution Service Provider (PSSP) and Super Agent licences.
The event provided opportunity for industry players to discuss how to strengthen the digital payment ecosystem and position Nigeria as a force to reckon with on the global payment landscape.
Jimoh said technology is expansive and Fintech operators must be seen to have what it takes to meet customers expectations in terms of efficiency and safety of transactions.
“We want to ensure that every single entity we regulate have financial muscles,” he said.
According to Jimoh, CBN’s responsibility as a regulator is to create an enabling environment where all the entrants can thrive and compete healthily.
“We understudy all the interoperable operations of each technology company, and all the participants generally. And from time to time, we bring all these entities together to dialogue to enable us to decide what the best industry practice is in relation to Nigeria’s payment ecosystem.”
Speaking during the panel session, Managing Director, Interswitch Purepay, Akeem Lawal, said players in the payment industry must collaborate to provide opportunities to co-create solutions that make digital payment safer and further drive profitability.
He said: “Interswitch is committed to partnering stakeholders to drive financial inclusion through its innovative products and solutions. These products reaffirm the company’s continued drive to improving Nigeria’s digital payments landscape through innovation and the development of first-rate solutions and infrastructure that address pressing needs in the payments ecosystem.”
Lawal further said Interswitch will continue to enter partnerships that will not only simplify payments, but also drive prosperity across the continent.
The participants and industry leaders were drawn from banks, fintechs, micro-finance banks, telcos and other financial institutions reached the resolve that designing innovative financial products which speak to the needs of customers will spur growth and economic prosperity.
The experts noted that players in the financial space need to synergise to explore avenues for mutual growth which will in turn create a robust payment ecosystem.
During the event, Interswitch unveiled eight new products designed to address prevailing issues within the payment ecosystem, enhance business development and boost ustomer experience.
The products include Fintech-in-a-box, Fraud Solution-as-a-Service (FSAAS); Banking-as-a-Service; Payment-as-a- Service; Interswitch Security-as-a-Service; Mobile Banking-as -a-Service and Biometrics on POS and Value financing.
These products are tailored to provide seamless payment solution to banks, fintechs, micro-finance banks, other financial institutions and their customers. Essentially, these products will help to improve the digital payment solutions that financial institutions offer to their customers.
Critical pain points the products will be solving include protecting customers against digital payment fraud, effective value financing tools for lenders, seamless integration to payment channels, enhanced customer experience, among others.