E-Banking: FBN Holdings, FCMB, 4 others generate N34.38bn in H1

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Story by Kayode Tokede

As the Central Bank of Nigeria (CBN) reduces Commission on Turnover to N1 per mille on every N1000, commercial banks in the country have continued to leverage on income generation using Electronic Banking (E-Banking).

For instance, FBN Holdings plc, Sterling Bank plc and four other commercial banks in first six months of 2019 generated N34.38 billion from E-Banking products, 45.3 per cent increase over N23.67 billion generated in prior six months of 2018.

The other commercial banks are, Sterling Bank plc, Union Bank of Nigeria plc, Unity Bank plc and Wema Bank plc.

Most of these banks E-banking income are generated via Automated Teller Machines (ATMs) N65 charges on remote-on-us transactions, Online transfer, E-card maintenance and Points of Sales Terminal (POS) transactions.

The increasing number of banks customers and Information Technology innovation in the banking sector, according to finance experts have played a critical role in E-banking income generated by commercial banks.

Combined with its subsidiaries, FBN Holdings recorded one of the highest E-Banking income in the period under review to N21.8billion, an increase of 46.3 per cent from N14.92 billion generated in H1 2018, followed by FCMB that generated N5.1billion on E-banking, 30.6 per cent increase from N3.91billion generated in H1 2018.

The likes of Sterling Bank reported 63 per cent increase on its E-banking income, from N2.06 billion in H1 2018 to N3.36 billion in H1 2019 while Union Bank of Nigeria reported a decline of 22.5 per cent E-banking income to N924million in H1 2019 as against N1.19billion generated in H1 2018.

The other Tier 2 commercial banks, Unity Bank recorded N1.43billion on its E-banking income in H1 2019 from N262.8million in H1 2018 as Wema Bank generated N1.74billion in H1 2019, 31.6 per cent increase from N1.33billion recorded in H1 2018.

The CBN Governor, Mr. Godwin Emefiele in his five-year policy thrust (2019 – 2024), expressed that the apex bank is aiming at robust payment systems infrastructure, while seeking to contain the risk to the financial system that could emerge from the use of digital channels.

He noted that the apex bank in its E-Banking policies has witness total volume of retail electronic payments increasing threefold over the last five years.

According to him, the CBN, an efficient payment system is vital to the effectiveness of monetary policy interventions, stressing that it also helps in reducing the cost involved in payment for goods and services.

He maintained that the, “The Payment Services Management Department in the CBN will work to enable the buildup of a robust and secure payments infrastructure in Nigeria that is reliable and easy to access.

“We will reinvigorate our efforts at driving the cashless initiative across the country, due to the immense efficiency gains that will be derived from it, and the impact it could have on our financial inclusion drive.

“Given Nigeria’s large size, and the cost involved in building bank branches across the country, the payment system department would support the spread and utilization of digital modes of transactions, so that every Nigerian will have access to financial services.

“A strong emphasis will also be placed on improving speed and efficiency of payments channels, while working to ensure that digital channels are safe and secure. This will help to build confidence in our nation’s payment system.

In order to improve utilization rate, we will continue to ensure that payment channels are interoperable, which will enable individuals with digital devices to transact across different banks or payment modes.

“Through measures such as the cashless initiative, USSD, Mobile Banking, agent networks and Payments Service Banks, Nigerians can expect to see significant improvements in the payment systems infrastructure over the next 5 years.

“We will also work with NIBSS, Banks and Fintechs in developing a regulatory sandbox. This sandbox will enable us to test financial innovations by Fintechs and Banks in a controlled environment, in order to assess its impact on the growth and safety of our financial system.”

Naira appreciates by 0.1% at I&E FX window

The Naira at the Investors & Exporters Foreign Exchange (I & E FX) on Monday appreciated by 0.1 per cent to close at N362.21 against the Dollar from N361.60 it opened for trading.

According to the FMDQ Securities Exchange, the local currency  traded high and low at N 364.00 and N310.00 against the dollar respectively.

A total of $293.60 million turnover was traded, data on the FMDQ OTC revealed on Monday.

However, the naira weakened against the Dollar by 0.3per cent to N360.00 as against the Dollar in the parallel market, while it moved to N306.9 against the dollar from N306.85 against the Dollar at the Interbank market rate of the Central Bank of Nigeria (CBN).

At the money market & fixed income on Monday, the overnight lending rate dipped by 43basis points to six per cent, even as banks funded for foreign exchange wholesale auction.

Activities in the Treasury bills market were bearish as average yield widened by 15basis points to 11.12per cent.

Sell pressure on the 304DTM (+26 basis points) bill led to yield expansion at the long (one basis point) end of the curve. Conversely, demand for 87DTM (-54 basis points) and 101DTM (-52 basis points) bill, led to yield contraction at the short (-eight basis points) and mid (-12 basis points) segment.

Trading in the bond market was bullish as the average yield dipped by two basis points to 13.40per cent.

Demand for the FEB-2020 (-21 basis points) bond led to yield contraction at the short (-10 basis points) segment. Conversely, selloffs of the FEB-2028 (+six basis points) and APR-2037 (+seven basis points) bonds, led to yield expansion at the mid (+two basis points) and long (+two basis points) ends of the curve, respectively.

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