Inlaks, the financial technology (Fintech) solutions provider, which already provides core and agent banking solutions for almost all the Microfinance banks (MFBs) in Nigeria is preparing to get the 28 newly registered banks on board its technology platform.
According to Olufemi Muraino, executive director, Inlaks, the additional 28 banks licensed by the Central Bank of Nigeria (CBN) is an opportunity for the company to integrate them into the National Association of Microfinance Banks Unified IT platform (NAMBUIT) to ensure a better regulatory framework.
The National Association of Microfinance Banks Unified IT Platform (NAMBUIT) is an institutional collaboration between Inlaks, CBN and the National Association of Microfinance Banks (NAMB).
Already, Inlaks is partnering with the CBN to deploy a single core and agent banking solution for almost 1,000 microfinance banks in the country under the auspices of the NAMBUIT.
The banking solution is expected to link the Microfinance Banks (MFBs) in Nigeria to the platform of the Nigeria Inter Bank Settlement System (NIBSS) to enable the MFBs to engage the cash deposit banks in a seamless transaction.
A core benefit of the NAMBUIT project, according to Muraino, is on-boarding of MFBs into the national payment system which will significantly lower the operating costs of the MFBs via provision of robust core and agent banking solutions for branchless banking in the microfinance sector. The first phase of this project comprises three major components one of which is the connection of MFBs to the Nigerian Inter Bank Settlement Systems (NIBBS) so that they can interface with the commercial banks. The NAMBUIT is expected to incorporate business intelligence tools for reporting so that the MFBs can transact and switch among themselves.
Inlaks says it is providing the MFBs with a globally rated core banking solutions that integrates easily into the biometric verification number (BVN) scheme. This core banking solution will enable the MFBs to work efficiently and scale their services.
‘What we have discovered with the MFBs is that a significant number of these banks use some sub-optimal solutions which hinder efficiency,’ Muraino said.
Information Technology (IT) solutions cost is a significant portion of the operating expenses of the MFBs, creating serious financial impact on their Operational Self Sufficiency (OSS). The NAMBUIT project however will reduce operational cost, deepen collaboration within the microfinance community and also spur significant growth in the sector by improving access to accurate and timely operational and financial information for prompt decision making.
The 28 newly licensed MFBs brings the number of microfinance banks in the country to 1,008, representing an increase of three per cent in that sector from 2016 to date.
Jumoke Akiyode Lawanson
