Flutterwave Emmanuel Efenure, head of Africa risk, said that while the fintech industry across Africa has seen pandemic-driven growth, there are still more opportunities for growth on the continent. He advocates innovative contactless services as the main way to break the dominance of cash in Africa and drive growth in the sector.This was while participating as a panelist at the 8th Nigerian Bankers Clearing System (NBCS) Keynote Conference Digital transformation and innovation of payment systems.
He said, “There are more than 200 million people trying to get around every day, implementing Contactless payments will revolutionize the ecosystem Start with the transportation system first. There’s no doubt that most people will likely appreciate alternative payment methods that don’t involve them exchanging money or words with a cashier.” He also spoke about Flutterwave’s efforts to support small businesses by helping them receive payments globally through the Flutterwave Store.
NBCS is an annual conference that brings together players from the banking and finance industry across Nigeria to examine the changing dynamics of the Central Bank of Nigeria’s regulatory and payment systems. Held at the Civic Center on November 19, 2022, the event is organized by the Central Bank of Nigeria (CBN) as part of its efforts to engage the private sector. The keynote was delivered by Samuel Okojere, Director of Banking Services at CBN, who highlighted the important efforts being made by top banks to resolve payment related issues and ensure fast clearing and settlement systems.
Other panelists at the meeting included Bariboloka G. Koyor, Director of Branch Finance, Central Bank of Nigeria; Pattison Boleigha, Chief Conduct and Compliance Officer, Access Bank; Harrison Nnaji, Chief Information Security Officer, First Bank of Nigeria, and Ekeoma Chidi-Ugorji, Head of Business Operations Group, NIBSS — — Represented Tauhid Abdulkareem brilliantly.
During the panel session, moderator Chika Okeke asked questions about the plans, trends and systems that will become the next big thing when it comes to the introduction of the Nigerian payments system.
In response, Emmanuel Efenure noted that cash-based transactions still dominate Nigeria’s payments ecosystem, but pointed to the emerging potential of digital payment innovations such as tokenization.
“By replacing card details with information that is useless to non-cardholders and hackers, Tokenization is a key initiative to reduce the risk of fraud and help gain consumer trust,” He says.
Response to moderator’s remarks about adopting e-checks and including USSD while keeping funds safe. Harrison Nnaji cautioned that e-checks are not a mass-market solution.
“Most USSD transactions in the country are usually below 20,000 NGN. There are even transactions as low as NGN 200. On the other hand, checks are mostly used for large transactions up to NGN 10,000,000. You cannot possibly have the ability to execute such transactions, Nor can you afford a smartphone to help you make seamless digital payments with multi-factor authorization,” he added.
Bariboloka G. Koyor spoke about the role of the CBN in strengthening payments in Nigeria, “The central bank is passionate about the payment system and innovation in Nigeria. Separating banking services into two distinct sectors, focusing on banking services and payment systems is a starting point. The regulatory sandbox is another big move. We are working hard to regulate and provide the platform that allows our payment system to thrive and keep consumers safe in the ecosystem.
Tahuid Abdul-Kareem reiterated the importance of digital transformation to NIBSS: “Digital transformation is customer-centric as it uses technology to drive our services and systems to provide better, seamless and efficient payment services to our customers. It There is a constant need to iterate and improve the services we roll out for Nigerians in payments, identification and security.
The event concluded with all attendees highlighting growth opportunities for the payments industry across Africa, and Nigeria in particular.