Nigerian traditional banks challenged to think innovatively as digital tech disrupts banking sector

…As Hope Payment Services Bank enters with new ideas

Nigerian tradit i o nal banks have been challenged to start thinking innovatively as the disruption of entry of digital payment service banks, a development which is drastically changing the banking sector landscape, may keep some of the conventional banks out of operation.

The days of going to bank to queue for transaction are gone, Minister of Communication, Isa Ali Pantami who was represented by Kashifu Inuwa, Director General of National Information Technology Development Agency (NITDA) said Tuesday in Lagos at the launching of Hope Payment Services Bank, another digital payment platform.

The minister recognised that though the conventional banks are digitising but said there is difference between digitising and digital. “Digitising means operational excellence, enhancing product and services while digital means a new rapid business innovation, new business model, new customer experience and new organisational structure. Banks don’t need to have branches anymore to serve customers”.

Pantami said the establishment of digital payment service banks is going to be a game changer in the banking sector and it is going to reduce operational cost drastically. He therefore asked banks to embrace emerging technology as government through the ministry is creating enabling environment for banks to do that.

The establishment of Hope Payment Services Bank is in response to the Central Bank of Nigeria, CBN’S financial inclusion drive to allow majority of Nigerians have access to finance and credit.

Ordinarily, when the inclusion rate in an economy is high, the citizens will have access to credit, finance and would be able to save and this will enable industries to easily access capital, employ more staff and generally improve the standard of living for the citizenry.

It was in this thinking that CBN in 2018 came up with the guidelines for licensing of payment services banks to ensure increase access to deposits and payment services by SMES, low income households and also allow financial excluded individuals and bodies to have access to financing.

Speaking at the launch, the Managing Director of Hope Payment Services Bank, Ayotunde Kuponiyi therefore said the bank is a full digital bank where things are done digitally.

“At Hope Payment platform, we believe that everyone, irrespective of identification, social or economic status and location should have access to financial and payment services with ease and convenience. As a bank we seek to provide accessibility, affordability, availability and awareness of digital financial service”.