Nigerian Banks Face Threats From Telcos With Implementation of Payment Service Banking -Moody's | Sahara Reporters

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Nigerian Banks Face Threats From Telcos With Implementation of Payment Service Banking -Moody's | Sahara Reporters Moodys notes that most of the banks in the country, will not be able to withstand this competition, with the exception of... READ MORE:

Telecom operators and financial technology companies are expected to reduce the customer base of money deposit banks in the retail space with the anticipated implementation of Payment Service Banking.

Moodys notes that the CBN had in October 2018, issued guidelines on PSB licenses which enables non-banking institutions to operate accounts independently of established banks. “Large telecom companies will be able to leverage their large customer bases, threatening banks' strategies to mobilise retail deposits via mobile-phone-based platforms, although banks will be able to keep deposits where wallets are held in their trust accounts. Fintechs may also create alternative distribution and payment channels that risk eroding banks’ payment services' fee income,” the analysis notes.

They would, therefore, have to go into partnership with banks to enjoy the benefits of the increased market space. The firm also observes that certain commercial financial institutions have already positioned themselves for this competition by buying robotic and tech services from the fintechs.

Source: Financial Digest (financialdigest.net)

 

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Commercial banks will still be here for a while but their influence will wane over time and eventually out.

And Libra is yet to come in plus many cryptor stable coin. At some point, we might not even need the bank anymore I don't think banks might survive this.

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