Stanbic IBTC Holdings Plc revealed its futuristic business agenda to integrate technology with real-time financial operations. The commercial bank is ready to join the list of its peers in the banking industry to embrace fintech’s emerging prowess trending past other technology-inclined sectors and thrive in the global digital market.
The proposed fintech startup debuted by the commercial bank will operate as Stanbic’s subsidiary dispensing the same financial service tech-wise. While Stanbic IBTC Holdings is yet to gain the Central Bank of Nigeria, CBN, permissible to debut its fintech business, the commercial bank already decided its fintech startup will be dubbed Stanbic IBTC Financial Services Limited.
Stanbic IBTC Holdings’ spokesman confirmed its financial institution intends to revive its business with the possible revenue income the soon coming Stanbic IBTC Financial Services Limited is likely to generate. Stanbic’s spokesman revealed more facts without unveiling his identity.
The commercial bank 2021 H2 revenue after-tax deduction fell drastically by 20% which is equivalent to N39.9bn. A regressive performance in contrast with Stanbic IBTC Holdings’ previous revenue that reportedly summed up to N66.2bn YoY basis. Stanbic spokesman noted its commercial service transactions have dropped since the Coronavirus outbreak.
Recall the fintech surge is influenced by the 2020 pandemic global lockdown to curb COVID-19 spread. 2021 encountered a mild post-pandemic economic crisis in contrast with the previous year. Still, the fintech sector continues to surge outpouring revenue to date.
The anticipated Stanbic IBTC Financial Services Limited fintech startup is related to other fintech transition schemes by other behemoth commercial banks in Nigeria. The Brit-owned Standard Chartered Plc seeks the CBN’s permission to license its fintech business designed to process payment service bank transactions. While Stanbic IBTC Financial Services Limited will offer a similar fintech operation related to providing payment solutions as a service.
For context, Payment Solutions Service Provider, PSSP, is an electronic payment infrastructure the financial Holding company set to debut as Stanbic IBTC Financial Services Limited. The PSSP is a flexible financial technology multitaskable to either serve as a payment solution application development, e-payment portal or gateway, or a merchant service aggregation.
Commercial banks commissioned fintech platforms are focusing on the mobile initiative that processes cash transactions without a credit facility to issue loans. The credit market is reportedly plummeting — neither PSB nor PSSP accredit loans.
The likes of Stanbic IBTC Holdings Plc and other commercial banks sought for alternative solutions to bolster their revenue growth. Stanbic reportedly shut down its foreign exchange business — replacing Bureau De Change with Life insurance operations to make ends meet.