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Institutions Providing Payment Services in Nigeria

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Institutions Providing Payment Services
4.2.1 NIBSS
The Nigeria Inter-Bank Settlement System Plc (NIBSS) was set up by the decision of the Bankers Committee
in 1992, as a Banking Industry Shared-Service, to help streamline inter-bank payments and settlement
mechanisms, and to promote electronic payments in Nigeria. Incorporated in April 1993 it commenced
operations on 13th June 1994.
NIBSS is owned by all licensed banks in Nigeria, and the Central Bank of Nigeria. The Board consists of
representatives of banks, two Executive Directors and the Managing Director of NIBSS with Deputy
Governor (Operations), Central Bank of Nigeria, as the Chairman. The shareholding of NIBSS is
periodically realigned based on the volume of payments from participant organisations.
The scope of operations of NIBSS in the Nigerian financial sector is such that fulfils its mandate as enshrined
· in the company’s Memorandum and Articles of Association:
To carry on business as a service oriented institution that provides the mechanism for same day clearing and
· settlement of inter-bank transfers and payments;
To provide infrastructure for the automated processing and settlement of transactions between banks acting
on their own account as regards deposit placements, Treasury Bills transactions, Naira settlement on inter-
· bank foreign exchange transactions;
To initiate and develop an integrated nationwide network for the electronic or paperless payments, funds
· transfer and settlement of transactions.
To provide framework for elevating the level of efficiency in funds transfer services generally
NIBSS is responsible for the management and operation of much of the retail payments infrastructure, as well
as offering some value-add services to payment systems participants
4.2.1.1 NIBSS Electronic Funds Transfer (NEFT)
The NIBSS Electronic Funds Transfer (NEFT) service is widely used by all banks to process inter-bank
electronic funds transfer instructions of their respective customers.
4.2.1.2 Nigeria Automated Clearing System
NIBSS operates the central Nigeria Automated Clearing System (NACS) infrastructure that clears majority
of the deferred net settlement payment systems.
4.2.1.3 Nigeria Central Switch
The national Electronic Funds Transfer (EFT) switch ensures inter-connectivity / interoperability amongst
Banks and licensed EFT Switches in Nigeria, and serves as an international retail payments gateway for
Nigeria.
4.2.1.4 NIBSS Instant Payments
NIBSS developed and operates NIP (NIBSS Instant Payments), a real-time account-to-account payment
system
4.2.1.5 Settlement Services
Private switching companies and the Central Securities Clearing System Plc(the clearing and settlement
system of the Nigerian capital market) rely on NIBSS for the cash settlement of their operations.
4.2.1.6 e-Dividend
NIBSS secured the consent of the Securities and Exchange Commission (SEC) and other major stakeholders
of the Nigerian capital market in 2007 to be the sole processor of shareholders’ dividends.
4.2.1.7 Central Mandate Management System (CMMS)
Central Mandate Management System (CMMS) was introduced by NIBSS to address the problems and
challenges faced by Banks, Insurance, Leasing and Utility Service Providers when handling the
administration and validation of direct debit mandates.

4.2.1.8 NIBSS Intra-Day Exposure System (NIDES)
NIBSS enriches settlement operations, particularly in the banking system with the NIBSS Intra-day Exposure
System (NIDES). It enables all Bank Treasurers and Fund Managers to monitor settlement exposures of their
respective Banks
4.2.1.9 Automated Bulk Clearing Service
NIBSS leverages her expertise in payments service provision and credibility in the Nigeria financial system
to provide EFTservices to select corporate bodies and government agencies directly.
4.2.1.10 Payment Terminal Service Aggregator
NIBSS provides reliable data channel, effective interoperability and ensures higher POS availability.
4.2.1.11 NUBAN Account Verifier
NIBSS provides an online tool for verifying that a NUBAN is valid.

2 NIBSS e-BillsPay
NIBSS eBillPay is an account-number-based, online real-time Credit Transfer product that enables
customers to make payments by leveraging the security provided by the banks. The service also facilitates
electronic bill payments, collections, and purchases

Interswitch

Interswitch is a commercial organisation that offers payments processing services and a switching
infrastructure for payment routing. Itprovides online, real-time transaction switching that enable businesses
and individuals have access to their funds across the 22 banks in Nigeria and across a variety of payment
channels such as Automated Teller Machines (ATMS), Point of Sale (PoS) terminals, Mobile Phones, Kiosks,
Web and Bank Branches
Interswitch’s Electronic Funds Transfer (EFT) switching application, supports major networks including
Verve, MasterCard, and China Union Pay, besides other proprietary networks.
Interswitch also offers AutoPay, a scheme similar to NIP that uses the card/PAN for payment routing. This
scheme is run by Interswitch and uses the same settlement as Verve. The settlement scheme run by
Interswitch has not been formally reviewed as part of this release of PSV2020, but operates a settlement
process that requires collateral to be posted by scheme participants and processes inter-bank settlement on net
basis with the NIBSS settlement services.’.

SystemSpecs

SystemSpecs offers Remita e-Payment, e-Collection, Payroll and Biometrics end-to-end electronic payment
platform to government entities and corporate organizations.
Remita has been widely accepted and is connected online, to all Deposit Money Banks and a sizeable number
of Micro Finance Banks. Other MFBs and Primary Mortgage Institutions are supported in an off-line model
thereby enabling payment to all financial institutions in the country. In addition to the delivery of funds to
bank accounts, the platform simultaneously delivers reconciled associated schedules to relevant non-bank
bodies such as Tax offices, Pension Administrators, Cooperative Societies and Trade Unions.
Remita accepts single and bulk payment instructions and passes these through the predefined internal work
flow of the organisations. Upon final approval, the payer’s bank account is debited and funds transferred to the
credit of the beneficiary bank. The transaction does not create exposure for the beneficiary bank which would
have received funds before crediting the beneficiary’s account. The payers are able to monitor online, the
status of all their payment instructions which are typically closed between two to six hours.

Payment is considered final upon consummation by the final payment approver. Payment reversal function is
available on the platform as a separate process that can be initiated and authorised by the beneficiary bank
where necessary.
Remita Direct Debit – This module of the platform centrally manages direct debit mandates for fixed sum
debits and Variable amount debits as signed up by the service beneficiary. The mandate forms are approved
once by the paying bank and thereafter automatically processed for payment and credit into Collectors’
accounts on the due dates. Collectors are also able to monitor the status of all their due funds.

Remita is the central payment platform supporting the payments of Federal Government Ministries,
Departments and Agencies under the Treasury Single Account (TSA) programme.

Unified Payments
Unified Payment Services Limited otherwise known as Unified Payments® is a card-neutral and optionneutral Payments Service Provider founded in 1997 by a consortium of leading Nigerian banks. Unified
Payments operates as a shared infrastructure for the banking community in Nigeria and Payments Service
Provider within and outside Nigeria, with a mission to be the most preferred e-payment service provider in
Africa. Formerly known as ValuCard Nigeria Limited, the name of the Company was changed in 2012 to
reflect its new business, following a successful transformation from a domestic card scheme to a provider of
payment services supporting different payment options and schemes.
Unified Payments is a Principal & Plus Member of Visa and has contributed to the growth of electronic
· payments in Nigeria through the following business offerings:
Processing, Unified Payments provides a secure and reliable infrastructure that enables Issuers to provide
cards and other payment options to their accountholders or customers and for transactions across different
electronic channels – Internet, Physical Points of Sales, ATMs, Telephone Handsets, etc. Unified Payments
also provides the backbone infrastructure that enables Acquirers to acquire transactions at all acceptance
· channels including Points of Sale and at ATMs. They are thus Issuer-Processor and Acquirer-Processors.
Acquiring, Unified Payments provides acceptance services, enabling merchants to accept cards and other
electronic means of payment for goods and services. Unified Payments has the largest non-bank acceptance
· infrastructure in Nigeria.
PTSP (Payment Terminal Service Provider), Unified Payments has the privileged license of deploying,
monitoring and maintaining Points of Sale terminals to Merchant locations on behalf of other Merchant
· Acquirers.
Switching: Given their network of links with banks in Nigeria, Unified Payments is also able to provide
switching services between Issuers and Acquirers in Nigeria, thereby significantly reducing connectivity
costs between Issuers and Acquirers as well as increasing the throughput, through a significant reduction in
· potential points of failure.
Value Added Services: Unified Payments provides other value added services like settlement agents,
Dispute management agents, Bills payments, collections, Air time vending and various other solutions that
enables e-commerce

READ   TIPS ON HOW TO CUT DOWN ON YOUR MONTHLY EXPENSES

Other Local Switching Schemes
Other local switching schemes include VIZ Etranzact, UPSL, EMP& 3LINE

Payment Instruments in Nigeria
Nigeria offers the typical forms of payments used within most countries in the world

RTGS Payments
CBN has recently deployed a new infrastructure (NISS) to support RTGS payments. The new system uses
the SWIFT Y-copy methodology for transmission of payment instructions between NISS and Participant
Banks, allowing banks to support Straight-Through-Processing (STP)for high-value payments – a
significant improvement over the previous system that forced participating banks to manually enter
transaction on-line. In 2012, RTGS payments represented 0.6% by volume, but 75.1% by value of domestic
payments.
NISS also supports the Central Securities Depository (CSD) function for Government Securities, a critical
function for creating a flexible Collateral Management solution for payment system resilience.

2 ACH Credits and Debits
The high-volume batch payment method, NEFT, is a typical ACH system that supports both credit and debit
payments. NEFT transactions settle in two of the three daily settlement sessions of the national clearing
system (NACS) operated by NIBSS. Settlement 1 (10:00 hrs.) and Settlement 2 (15:00 hrs.) offers same day
value for ACH credits. There is no value limit (minimum or maximum) on NEFT payments. In 2012, NEFT
transactions continued their strong growth pattern and now represent 38.1% by volume and 9.1% by value of
all payments

Cheque Clearing
Cheque processing has been streamlined by the consolidation of the previous 37 clearing centres into one
national automated clearing centre and the introduction of cheque truncation to dematerialise the original
paper instrument into a secure electronic form. As a result of these changes, the cheque processing cycle has
been harmonised into a standard process regardless of branch location, and the cycle reduced from a 3-5 day
cycle to a 2-day cycle. In 2012, cheques represented 49.0% of transaction by volume and 13.1% by value.
The average cheque value has fallen by 48% to 529,000 Naira since 2009 reflecting the cheque limits imposed
by CBN.

NIBSS Instant Payments (NIP)
A new payment scheme was introduced in 2011, offering real-time inter-bank account-to-account electronic
funds transfers. The scheme, operated by NIBSS and offered by all major banks in Nigeria, has met with
overwhelming approval from the user community as witnessed by the impressive adoption rate.
NIP allows the payer to confirm the account holder name before sending funds. It uses the central switch to
pass the payment instructions real-time to beneficiary bank which applies funds on receipt. Settlement
rd
occurs once per day in the NIBSS 3 clearing cycle at 15:30 hrs.
In 2012, NIP represented 8.5% of all payment transactions by volume, and 15.5% by value, and in June 2013
NIPtransaction exceeded cheque payments by volume for the first time.
The monthly figures since June 2012 show the strong growth of NIP transactions (Note: the volumes below
reflect only the NIPpayments between different participating banks and so understate the total volume)

Mobile Payments
CBN has licenced 26 individual mobile money operators (MMO), allowing them to offer mobile
payment schemes. Nigeria has adopted a ‘bank-led’ model for mobile payments, requiring the mobile money
operator to work with a sponsoring bank. All client funds are held by the sponsoring bank in trust accounts
and customer funds are covered by a deposit insurance scheme of the Nigeria Deposit Insurance Corporation
(NDIC). All mobile money operators are required to provide interoperability to other mobile schemes,
enabled through connection to the Central Switch operated by NIBSS. Adoption has been strong, and in 2012
mobile payments represented 3.0% of payment transactions by volume, although only 0.02% by value
highlighting the usage of mobile money for small value person-to-person flows and mobile air-time top-up.
rd Settlement of inter-scheme flows occurs once per day in the NIBSS 3 clearing cycle at 15:30 hrs.
CBN has determined that sufficient MMOs now exist and has announced an increase in the capital
requirements for new and existing MMOs. It is likely that this will result in fewer new applications and a
potential consolidation amongst existing providers.

Card Payments
There are three card schemes in operation, the international schemes of MasterCard and Visa, alongside other
domestic card schemes such as Verve, Genesis and Freedom cards. Any organisation offering payment
switching services must, by policy, connect to the Nigeria Central Switch to ensure full interoperability across
different schemes.
The overwhelming use of cards in Nigeria is for ATM withdrawals, representing 99.3% of all card
transactions in 2012). ATM transactions are excluded from the overall payment volume analysis, since they
are not payments per se, merely a simpler way of obtaining cash to support cash transactions. However, the
strong growth in ATM transactions indicates a migration to the formal banking sector even though the
resulting payments may be cash.
Use of cards for payments is predominantly by debit card since there is a limited credit culture.
rd
Settlement of net flow from issuer to merchant occurs once per day in the NIBSS 3 clearing cycle at 15:30
hrs. Nigeria operates a non-standard process by remitting funds direct to merchant accounts rather than
through the industry standard approach of funds flowing through the merchant acquirer. This local regulation
was in response to a common complaint by merchants that payments from acquirers were being delayed.
NIBSS, as a neutral party in the card payment value chain, is responsible for remitting the funds to the bank
holding the merchant account.
In addition, CBN has imposed a maximum interchange fee of 125 basis points (1.25%) for all card
transactions (both debit and credit cards) subject to a maximum of N2,000 with the exception of the
hospitality industry where maximum cap of N5,000 is allowed. For ATM transactions, the cardholders pay
no charge which is absorbed by the issuer or paid to the acquirer depending on the nature of transactions (Onus or Not-On-Us) respectively
POS transactions are growing strongly (3.4% by volume and 0.03% by value) driven largely by a focus on
initiatives such as Cashless Lagos. Monthly statistics since July 2012 show a strong growth in POS
transactions

However, the deployment, availability and active usage of POS devices continues to be a challenge as highlighted in
the statistics from NIBSS. Many deployed POS devices are not connected or are inactive (no transactions over a one
month period). Several studies on usage of POS terminals have highlighted the numerous challenges such as
telecommunication and power issues, preference for cash by store staff due to the ‘no change’ culture, and lack of user
awareness and acceptance.

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BUILDING TRUST IN AN ERA OF DIGITAL BANKING

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BUILDING TRUST IN AN ERA OF DIGITAL BANKING

BUILDING TRUST IN AN ERA OF DIGITAL BANKING

With an increasing trend in technology, digital banking is fast becoming the order of the day and customers are quickly aligning with this shift due to its convenience and popularity.

Digital banking has made it easy to save money, send cash to others, check account balances, apply for loans and other financial products in less time.

Despite all these, customers have always been in doubt that their private financial information is being kept safe from intruding eyes. In the era of digital banking, enabling trust and achieving high-security online platform is a huge essential for banks and customers as well.

Digitalization of the banking sector is being faced with a lot of threats which makes customers doubt the credibility of online banking. Some of these threats are:

 

  • Unencrypted data: Leaving our data unencrypted is a huge way to let potential criminals gain access into our digital banking profiles. While “bank-level encryption” is mostly a marketing term, it’s still proof that your institution does not take this part of security lightly.
  • Identity theft: Identity theft is as big a threat today in banking.
  • Ransomware: Ransomware can be surprisingly scary. This term is concerned with a third party gaining access to and taking control of your computer and its files and then attempting to manipulate you by extorting money from you in exchange for restored access. After the victim pays up, there’s no assuredness that the thief will follow through with the negotiation.

 

Financial institutions can easily leave cybersecurity blind spots accessible for potential criminals. Thankfully, many well-known organizations now know the stakes and how to prevent problems when they can as well as responding quickly in a crisis when they cannot.

Trust is a necessity for the progress of any company. It plays a non-negotiable role in digital banking. However, digitalization of the industry provides a perfect avenue to fortify customers’ trust

Ensuring that security and trust related issues are met involves regular training, random spot checks and hiring for soft skills such as conscientiousness and being apt to details .

Of course, banks can do all of this and still fail to connect with their customers or communicate meaningfully about the measures they’re taking. That’s why the heroes of the show in the digital era are transparency and integrity. Banks can gain a competitive advantage by being transparent about their modus operandi and by taking the right precautionary measures before regulatory groups force their hands.

 

There are many factors that are vital to gaining the trust of customers in digital banking services. In the following, we will discuss five critical building blocks that form the bedrock for actively building trust in digital banking services.

 

INTEGRITY OF THE BANK AND BRAND EXPERIENCE

The integrity of a bank and its reputation has a major impact on the trust that clients place in it.

On the one hand, the stability of a bank is important: it consists of financial stability, security measures and size, as well as other things.

On the other hand, the client experience is also of crucial importance, i.e. how the client is treated, how the bank communicates with the client, and how the bank responds to and helps solve its client’s problems.

An enjoyable experience that a client encounters with the bank through other channels has a positive impact on the afore trust in the bank’s digital services. It is, of course, necessary that the customer also realizes a digital service as that of their financial service provider. Steady and integrated branding across all offline and online channels is the key to realizing this goal.

READ   DIGITAL BANKING: THE FUTURE OF BANKING

 

RELIABILITY OF THE SYSTEM

Digital services must meet the basic requirements for IT systems in order to convince a user that the platform in which he or she is operating on is reliable. While in an interpersonal relationship people try to analyze the motives and intentions of their partner, in a human-machine relationship they evaluate the reliability of the technical device. A system that is not available or accessible denotes that something is wrong with it, as do above-average loading times.

 

SECURITY AND PRIVACY

Security concerns are one of the main factors responsible for the adoption of online banking services.

The supposed security is of crucial importance for the trust of the customers. It is not sufficient to simply implement a system securely, the user must also view this system as secure. For these reasons, precautions for the security of the system should be communicated in a language convenient to the customer. It must always be ensured that any information about security processes that is available to the user is also accessible to a potential hacker.

 

USEFULNESS AND EASE OF USE

Another basic building block of confidence-building is useful services that meet customers’ demands and are user-friendly in operation.

Usability has been proven to be an important factor in building a relationship of trust between people and digital services.

In contribution to the actual usability, the direct benefit of a service for the customer is also considered. The more useful a service is, the more eager the customer will be to entrust his information to a service provider. Appropriate services and convincing usability can only be gotten in a design and development process by steadfastly involving the customers and future users.

 

TRANSPARENCY IN ALL AREAS

Another fundamental building block for enhancing trust is transparency. The more a customer knows about a service provider, the more convenient it would be for him to analyze the consequences of his potential conduct.

Also clients welcome the idea of lucid transparency on the part of the bank when it concerns the use of their data. For some users, this knowledge is even vital to build trust and is encouraged by control over their own data.

Digital banking is a great step forward for customers as well as the financial institutions serving them. As we’ve seen, banks are working relentlessly to employ the right staff and use advanced technologies to secure our profiles. However, we need to meet up with our own end of the bargain too and carry out the small steps available to us to ensure our most treasured information stays safe and secure.

Bank with Mint is a digital bank committed to keeping customers’ data safe with different safety measures such as encryption of all data. All deposits are insured by the Nigerian Deposit Insurance Corporation(NDIC)

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BANKING

DIGITAL BANKING: THE FUTURE OF BANKING

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THE FUTURE OF BANKING

DIGITAL BANKING: THE FUTURE OF BANKING

There have been drastic changes in the banking industry over the years. With recent trends in finance such as open banking, Cashless withdrawal at the ATM, Bankcards, and POS withdrawal, people think that the herculean task of standing in banks has been tackled with but the question remains, could these trends be the future we have always dreamt of?

The known meaning of “bank” has undergone so many changes, making the traditional banks face massive threats from what technology has to offer to the banking industry and human experience at large. Bank processes are experiencing distortion and the normal day to day interactions with customers are being repositioned.

Banking has improved from what it usually was and is migrating further to what it can be at a faster rate. The future of banking now relies on the extent to which banks utilize rare opportunities available to them, the way they use the massive information that they are provided with, the innovation they can come up with and the extent to which their tactics, methods, and activities revolve around consumers’ everyday life.

An obsession with customers will play a critical role in the future of banking as banks will be preoccupied with the customers’ problems and will always have their customers’ interests at heart from the beginning to the end.

Customer habits and priorities are being re-aligned to banking with speed and efficiency. They want a situation where the solutions to their problems and answers to their questions will be provided immediately on their mobile phone. Customers do not want to go to branches and stand in a queue; they want financial information at the tip of their fingers and the ability to transact at the touch of a button.

The bank of the future will be a technological firm that will focus on banking and this is where digital banking comes in. Digital banking Is the digitalization of banking services to reduce risk, improve efficiency and serve customers better.  Digital banking allows customers to deposit money, withdraw money, apply for loans, check account management, make payments online using their smartphone, and more.

Digital banking provides a lot of benefits for both banks and customers. While customers save time and stress that come with traditional banking transactions, banks save money on physical infrastructure by moving a part of their transactions online.

It is important to note that there is a difference between online banking and digital banking as people often misplace the two. Online banking focuses mainly on remote deposits, money transfers, bill payments, and basic online management of accounts. Online banking could also be referred to as e-banking, virtual banking, or internet banking but digital banking focuses on digitizing the major aspects of banking. It involves digitizing every program and activity carried out by financial institutions and their customers

Looking at the future of banking, going digital is no longer an alternative for firms who wish to survive. It’s a must as the progress of Digital banking is moving at a fast pace with no signs of reducing its pace. Accessibility, rate of operation, and confidentiality are not just extra bonuses to consumers anymore. They are now standard essentials of the rapidly improving customer-bank relationship.

Consumer choice has moved to online and mobile devices. This shift has caused many financial organizations to struggle with moving banking experiences to online channels and the smaller mobile device screens. As customers are increasingly willing to switch banks for digital features such as bill payments, mobile payments, and loan applications, banks are trying to meet up with these changes.  A lot of banks have integrated their services smoothly into their customers’ daily lives.

READ   BUILDING TRUST IN AN ERA OF DIGITAL BANKING

However, in the course of providing new platforms for banks to react and respond to customer needs, the digital realm also offers an increasingly competitive playing field, with competitor banks regularly entering the market. We are fond of hearing of new banking brands presenting incentives to persuade customers to trade banks. This tug of war is putting additional pressure on banks to do better than the other, to retain customers and promote long-term loyalty.

Short-term cash incentives, however, will be in vain if a company’s long-term digital experience is not up to standard. Lost customers depict lost income, a negative effect on brand reputation, and market share attrition. To procure and retain a competitive edge, banks must have a good knowledge of what consumers require from them online and then live up to their demands.

The future of banking is digital. While security and cost-efficiency are important, the worth of digitalization is what the customer stands to benefit from it. Customers believe that digital banking has made life easier for them as it has allowed them to enjoy the simplicity of managing all their finances in one place, setting up automatic payments, or making deposits anytime and anywhere.

Finex Microfinance Bank realized on time that the future of banking meant serving their customers better. This made them spend time and money to come up with a digital bank, Mint Digital Bank.

Mint Digital Bank is a tech start-up based in Lagos with a tech product that is restructuring the bank industry.  Mint Digital Bank has made customers forget about queuing up in bank branches to carry out transactions, as you can transfer money, request money from Mint customers, pay bills, buy airtime, request and pay back loans and so much more with just one app. Mint has made payments super easy.

Mint allows you to manage your finances personally. With the Mint app, you see your inflow and outflow in simple terms. You can also set spending limits, lock your card and make plans. Mint also allows customers to save money as much as you like for that big project.

Mint account is provided by Finex Microfinance Bank ltd. Finex Microfinance Bank is licensed by the central bank of Nigeria and all deposits are insured by the Nigerian Deposit Insurance Corporation(NDIC)

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LIASING WITH MINT DIGITAL BANK: A SURE WAY TO MANAGE YOUR MONEY

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LIASING WITH MINT DIGITAL BANK A SURE WAY TO MANAGE YOUR MONEY

LIASING WITH MINT DIGITAL BANK: A SURE WAY TO MANAGE YOUR MONEY

A good financial future isn’t about how much money you make but how you manage and plan. Good money management makes life easier as it ends up adding more funds to your accounts and reducing your debts.

Money management is the process of keeping records and planning how you spend your money. It entails budgeting, saving, and investing.

Most often, one could be faced with a decision to spend on a large purchase. You don’t just conclude that you can afford something, be sure that you can actually purchase that equipment and still have cash left and that those funds you are about to use have not been committed to an important expense.

This involves using your budget and the balance in your checking and savings accounts to decide whether you can go on with a purchase. Always have at the back of your mind that the fact that the money is there doesn’t mean you can make the purchase. You have to put into consideration the bills and expenses you’ll have to pay before your next payday.

LIASING WITH MINT DIGITAL BANK A SURE WAY TO MANAGE YOUR MONEY

Keeping your money in banks easily allows you to save and spend. Most often people see their savings accounts as nothing but just a place where they can store their hard-earned money.

So many Digital banks have added quite a lot of built-in tools that can help clients manage their money better and have more of it in their accounts with MINT DIGITAL BANK BEING NO EXCEPTION.

Bank with Mint is a digital bank that has made money management more accessible and fun by just using your smartphone to keep record of your spending.

Having an account with Mint, you can do so much more with your money and manage your money properly. Here are ways you can manage your money

1. Use the Scheduler.

There are bills we pay regularly such as internet and TV subscriptions, water bill, energy bill, and so many others. Knowing the exact date when these bills should be paid, you can schedule payments from your mint account. You can decide if you would want us to send reminders of each bill just in case you don’t have enough money to cover the bill.

Using the scheduler can help you save the stress of paying manually when the bills are due and it helps one plan ahead where their money will go.

2. Budget Planner

With the advancement in digital banking, you can track and categorize spending, set savings goals or create a spending plan on your computer or your mobile device, so you can know what is up with your finances without having to log out of your banking app.

This budgeting tool can help you to track expenses and plan.  With Mint Budgets, you’ll be able to organize your budget by goals. It’s all synced with your transactions and savings so you can be on top of your finances in one place.

With your budget, you can assign where each money is going to, either for a project or bills or groceries and so on.

3. Set Limits on How You Spend

We understand that it can be hectic to keep track of how much you spend while keeping up with your goals. That’s why we put you in control to set limits as often as you want. Want to minimize expenses daily, or be more flexible for emergencies? Your Mint Account is there to help.

READ   DIGITAL BANKING: THE FUTURE OF BANKING

Even with all the self-control in the world, there are times you don’t stick to following your money rules and that’s why the spending limit feature exists.

This spending limit tool is considered to be a last resort to keep you in check when you’re about to spend beyond your budget. This tool also enables you to adjust your limit whenever you want

4. Track Your Expenses in Real-Time

Each time you spend, your Mint Account helps you categorize your spending so you know precisely how much is going to different areas of your lifestyle.

You can also make use of Mint Tips. Mint tips are built from your transaction history. Your Account learns as you spend, meaning it can suggest how you can save better, reduce spending on certain categories to meet your goals, and even enjoy discounts on common expenses.

5. Sub-Accounts for Savings

Putting money aside is very important in managing your finances.  But not saving for any specific goal can be a major problem in finance management, because a savings account with a specific goal attached to it can feel more like a supplemental checking account.

If you are having difficulties in building savings, the mint app will help with sub-accounts for your savings account. With sub-accounts, you can be specific about what you are saving for in each account. When you have earmarked an account as savings for a new car, you are much less likely to use money from such an account to pay for a vacation. This process is known as mental accounting. It causes you to place value on money differently depending on what you have assigned it for. This will encourage you to be more responsible with money that has been earmarked for a specific purpose rather than money that is unlabeled savings.

This tool will allow you to allocate funds to sub-accounts under the umbrella of your primary savings account. You can give each account names with its savings purpose (i.e., new house fund, Vacation Fund, New Car Fund, Emergency Fund, etc).

In conclusion,

Financial management is changing as the world changes, hence making it difficult to retain a budget using old tools.

While the traditional banks only had to hold your money and send you statements, Digital banking is being geared to making money management easier for you.

Money management could be a complex skill to master, but with Bank with mint, you can make use of all our online tools, automation, and account personalization. These will help you manage and grow your money without much stress.

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