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The Agriculture Sector is key to the Nigerian economy and has a value chain that is ideally suited to integration and automation.

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Agriculture Vertical – an example of the catalyst role for CBN

The Agriculture Sector is key to the Nigerian economy and has a value chain that is ideally suited to integration and automation. The rational for promoting adoptionin the sector is compelling: ·Agriculture represents 43% of GDP and engages 70% of labour force ·The sector has a very high potential for employment generation, food security, poverty reduction and industrialisation ·There is already Strong Federal and State Government focus, and a huge Local Government potential for the sector ·The sector is the largest constituency for financial inclusion, with service opportunity for KYC Identity enrolment, basic transaction (“no frills”) account, mobile wallet, pre-paid cards and mobile commerce. ·The payment systems offerings fit in to the agenda for Nigeria Incentive-based Risk Sharing System for Agricultural Lending (NIRSAL) to de-risk agricultural financing and facilitate low-interest credit ·This will facilitate efficient and transparent distribution of government grants and subsidies (e.g. Growth Enhancement Support Scheme of FMARD) So far, stakeholder meetings have been attended by representatives from government, deposit money banks, consumers, mobile money operators, identity management service providers, development partners, agriculture finance specialists and regulators. The current plan covers the following initial steps: ·Integrate the relevant activity plans for multiple stakeholder communities, including FMARD, BOA and Cellulant, National Identity Management System, Bankers Committee Identity Management project, Cashless Economy, Financial Inclusion initiative, appropriate State Government initiatives and the Government e-payments initiative. ·Plan to use the over 10 million farmer data to simultaneously provide Unique Identification, a “No frills” Savings Account, a Mobile Money Account and Prepaid Card ·Empower development institutions and agent networks to ease and broaden access to payment services by Agriculture communities ·Work with communication expertsto clearly define key stakeholder roles and profile stakeholders for proper coordination and effective communication. A consolidated masterplan, agreed with the Forum for Agriculture Finance Officers of commercial banks, CBN and the Bankers Committee will drive implementation.

Objectives of the review In March 2007, the Central Bank of Nigeria formally launched the Payment Systems Vision 2020 – a strategy that reflected four months of collaborative work with the leading banks in the country.

The objective was to drive the shift from a cash-based economy to one where electronic payment are at the centre of commercial activity the implementation of the strategy created an industry structure that has successfully instigated, promoted and implemented numerous successful initiatives. As a result of these impressive achievements, the Nigeria payments landscape looks very different from August 2007. Our starting point is now very different due to the successful implementation of much of the · original document and changes to international benchmarks: · The national payments infrastructure has substantially improved in both variety and efficiency since 2007 Consumers and Businesses are embracing innovative new technologies available today such as the use of · mobile technology, and the level of expectation is significantly higher New Core Principles for Financial Market Infrastructure have been defined by a joint working group drawn from the Bank for International Settlements Committee for Payment and Settlement Systems (BIS CPSS) · and the International Organisation of Securities Commissions (IOSCO) working group We have witnessed greater engagement in governance and direction of the payment systems from · Commercial Banks Other national initiatives such as Identity Management and Credit Bureaux are in the process of · implementation and wider adoption Payments infrastructure outside of Nigeria has progressed significantly Hence CBN has determined that a review of the PSV2020 strategy is appropriate. This document reflects a further six months of discussion, debate and analysis. Our overall objective remains consistent with the original PSV2020 document: However, the expectations are even higher in 2013 than when the first version of this document was released in 2007.
As a result, the PSV2020 Release 2.0 is much more than an update to the original vision. It is a complete re-write
based on new and aggressive objectives.

3.2 Progress since PSV2020 Release in 2007
The Nigeria Payments landscape is fundamentally different due to numerous initiatives, a summary of
which is given in the following sections.
3.2.1 Changes to the legal environment
A sound legal basis underpins the payments infrastructure, and several key changes to national statutes
· have been made, with further changes currently being progressed through the legislature
The CBN Act 2007was passed into law to further clarify the mandate of CBN in providing oversight of
the payment system.

The Evidence Act of 2011 ensured the legal admissibility of electronic records, essential for electronic
· payment systems
The Payment Systems Management Bill is currently being finalized, a bill that clarifies the structure and
· responsibilities within the payment systems industry
The Electronic Transaction Bill for an Act to facilitate the use of information in electronic form when
conducting transactions in Nigeria and for connected purposes.

New Payments Methods · NIBSS Instant Payments – Anew payment scheme, NIBSS Instant Payments (NIP), was launched in 2011.
NIP enables real-time inter-bank account-to-account electronic fund transfers. All major banks in Nigeria
· support this scheme, resulting in an impressive uptake by consumers
Mobile Money – Following the development and release of a Mobile Payments Rules and Regulation
framework, 26 mobile payments schemes have been licenced by CBN. The volume of mobile payments has
grown rapidly since 2011 reflecting the natural appeal of mobile as a payment method. Nigeria has adopted a
‘bank-led’ model for mobile payments, thereby ensuring the financial resilience of all schemes and creating
an open market to encourage innovation and competition
3.2.3 Infrastructure enhancements · CSD for Government Securities – In August 2013, CBN successfully completed an ambitious project to
deploy a new Real-Time Gross Settlement (RTGS) payments system plus a new Central Securities
Depository (CSD) for Government debt instruments. A robust RTGS payment system underpins a sound
Financial Markets Industry, and the inclusion of the CSD functionality supports greater flexibility in
· Collateral Management for the payment systems
EMV Cards – The Nigeria cards infrastructure successfully migrated to EMV Cards (Chip and PIN) to
· significantly improve the security of plastic cards
NUBAN – Astandardised bank account structure – Nigeria Uniform Bank Account Number (NUBAN) – has
been implemented to improve the quality of payment validation and automation. Arrangements to extend the
· NUBAN to non-bank financial institutions are nearly concluded
Clearing Cycle Reduction – The Cheque Clearing Cycles were harmonized across the country, and clearing
· cycles for ACH payments and cheques has been reduced from 3 days(T+2) to next day (T+1)
Centralised Clearing – The Clearing centre infrastructure has been rationalized, reducing seven automated
and thirty manual clearing centres to one national automated clearing centre that handles all ACH and cheque
· payments.
Nigeria Central Switch – NCS has become operational enabling interconnectivity and interoperability
among deposit-taking institutions and licensed payment service providers. The NCS also facilitates inter-
· scheme card and mobile payments.
Payments Terminal Service Aggregation – this model has been put in place to facilitate seamless and
interoperable card payments, clear regulatory visibility for the retail payment infrastructure, and reliable
· industry retail payment system statistics for analysis and planning purses.
Cheque Truncation – Cheque truncation has been introduced to dematerialise the physical cheque and hence
· processing purely on the basis of secure electronic images
Cheque amount cap – Acheque cap of N10 million was introduced to encourage higher value payments to be
· made electronically.
Mandate Processing for Direct Debits – A centralised Direct Debit Mandate Processing infrastructure has
been created to streamline the administration of the mandate process, and banks have been required to
· improve the validation of payment requests against the lodged mandates.
Credit Bureaux – Three separate but interlinked credit bureaux have been launched, providing the first steps
in creating a database of credit history which is essential as the financial community offer new banking
· products
ATM and POS Deployment – Under direction from CBN, banks and other financial service providers have
been required or encouraged to increase the deployment of ATM and POS devices.

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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.

 

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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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.

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.

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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