The fintech industry has influenced the Nigerian banking sector whereby real-time banks are rivaled by online banks and other online payment platforms dependable on smartphone users. Standard Chartered plc reveals its 2022 agenda to embrace the emerging digital market at the expense of losing half of its real-time operations in Nigeria, Techbooky.africa reports.
The Brit-owned financial service group established its twenty-five banking operations in Nigeria’s top-notch cites, including Enugu, Lagos, Abuja, Ibadan, Port Harcourt, etc. 50% of these branches are reported to shutdown while its brand name, “Standard Chartered” continues to provide financial services via the internet.
With fintech platforms aside, telecom companies also contributed to Standard Chartered’s service transition. The likes of MTN Nigeria, Airtel are major influencers of mobile banking markets, operating as a behemoth payment service provider. Their services also pose a threat to startups in the digital banking industry.
Remember, the Central Bank of Nigeria updated its policies that became mandatory for telecommunications companies to operate their payment platform with a license. The Nigerian banking sector has drifted to embrace online platforms likewise Standard Chartered online services experienced a surge.
Standard Chartered started its transition campaign towards the end of 2021 and is set to continue this year. Thirteen Standard Chartered banks will continue operating in real-time, in a fraction of twenty-five branches.
While the Brit financial group dispenses is mobile banking services, it will also deploy live agents to manage cash deposits and create awareness of its rebranded model of banking.
The British withdrawal from Nigeria’s banking markets will increase unemployment while Standard Chartered revenue income increases. There will be no need to establish more real-time branches which are more expensive. Standard Chartered Plc has a minimized budget to set up mobile banking agents — the evolution of less paperwork while banking.
In sum, mobile money operators are being responsive to the fintech productivity acknowledged by the CBN. The payment service bank endorsed by the CBN has issued more than 250 licenses to regulate the emerging financial mobile markets.
The CBN intends to make provisions of banking services backed by technology to be available in underserved communities. MTN MoMo agents are the perfect example for mobile money operations in Nigeria. The PSB license stretches towards benefiting SMEs while the Nigerian financial sector becomes a competitive market.
