Stanbic IBTC Moves to Rival Opay, PalmPay, and Kuda Bank With New Digital Bank

• Stanbic IBTC Holding has launched a new digital bank to operate in the fintech ecosystem
• The bank revealed that the operations of the subsidiary known as IBTC Financial Services would deepen market access for the Group
• Financial technology companies have encroached deeply into core banking in Nigeria, leading to innovations by most banks

One of Nigeria's commercial banks, Stanbic IBTC Holdings, has begun operations of its wholly-owned financial technology arm.

In a statement, the bank said that it had received the required regulatory approvals and licences to kickstart the operations of its fintech subsidiary and that it would operate under the name Stanbic IBTC Financial Services Limited.

New payment company to operate independently, focus on creative tech

The bank said:

"It will function primarily as a Payment Solutions Provider, focusing on developing innovative technology solutions to enhance Stanbic IBTC's existing financial services offerings.

"The launch of Stanbic IBTC Financial Services Limited marks an essential milestone for Stanbic IBTC as the company seeks to remain at the forefront of the rapidly evolving financial services industry.

According to Sogunle, the subsidiary will take advantage of expertise in tech with new and improved ways for firms to manage their finances, sell online and collect revenue and payments via its eCommerce solutions.

Demola Sogunle, the bank's Chief Executive Officer, revealed that establishing a fintech business would allow Stanbic IBTC to access further the payments and fintech markets.

Punch reports that Sogunle said the fintech subsidiary would contribute to the general business of the Group.

Nigerian banks losing customers to fintechs

Experts have said that conventional and commercial banks in Nigeria are facing stiff competition from fintech companies which have eroded most of the banks' customer base and infringed on their core operations.

During the peak of the cash crisis in Nigeria from December through March, banks in the country witnessed an upsurge in transaction volumes leading to the collapse of many bank platforms.

The development led many customers to desert the commercial banks and pitch their tents to payment firms and other fintech companies in Nigeria.

Recent data projects that the market's largest ecosystem will be a digital investment with a total transaction value of $58.37m in 2023 and that the average transaction value per user in the digital investment market is projected to amount to $15.78 this year, leading to a revenue growth of 54.0% in 2024.

Stanbic IBTC sends message as FG begins charging Electronic Transfer Levy on domiciliary accounts

Legit.ng earlier reported that Nigerian banks will charge N50 as an electronic transfer levy from dollar or pound accounts.

The development comes as Stanbic IBTC, one of Nigeria’s commercial banks, said it will begin deducting the sum of N50 on transfers into domiciliary accounts.

In an email, the bank notified its customers of the development on Wednesday, March 8, 2023.

Source: Legit.ng