Business

HOW CUSTOMERS’ INCREASED TRUST IN FIRSTBANK’S *894# USSD BANKING CAN BOOST THE FINANCIAL INCLUSION DRIVE

Published

3 years ago

July 14, 2021

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The path to financial inclusion holds different marketplace barriers and opportunities in different countries, but the push continues because of proof that an increase in economic activities among the financially vulnerable can reawaken a comatose economy.

For Nigeria, the last three years have seen significant growth of the financial inclusion rate from 56.8% in 2016 to 63.2% in 2018. FirstBank’s *894# USSD banking service is playing a key role in it.

FirstBank’s *894# USSD banking initiative is already averaging about 99 million transactions monthly, with a naira worth of (N’m) 370,543 on these transactions.

This figure includes the undergraduate doing a mobile airtime recharge; the trader receiving a mobile payment from a customer; the IT person hurriedly buying a data bundle to keep business afloat; the anxious father paying his daughter’s hospital bills for treatment to commence, and the busy worker in Lagos transferring money to his parents in the village since he cannot get to a banking hall.

This is just a rough sampling of the financial transactions that amounted to over N3.6 trillion in transaction value on the *894# USSD banking service in 2020. There is practically no financial emergency that the USSD service does not come in.

The problems that the *894# USSD service from First Bank of Nigeria Limited is solving is the only justification for the rapid traction it has gained since it was introduced in 2015.

It is easy to see Nigerians trust and confidence in the USSD system, with the Bank rapidly growing from 9.5 million customers on the USSD feature to 12.26 million customers within the last year.

Over 1.02 million of the figure, are customers who registered in the first 6 months of 2021.

The first and perhaps the most attractive feature of USSD banking has got to be that it can be done from any kind of phone and without any form of internet connectivity.

Although smartphones are getting more common, there is still a high poverty rate and many financially vulnerable people who cannot access internet banking.

The internet penetration in Nigeria is still below the ideal, so users have to deal with poor internet connections in some areas.

That is why this kind of banking service that can be accessed without internet connectivity is ideal for the financial inclusion drive.

The *894# USSD feature can be used across the four major GSM network operators in the country, meaning there is no added demand on the users.

Getting started on the service is as easy as dialling *894*0#, and creating a pin. With that done, you can do airtime and data purchase for yourself and other parties, transfer funds to other accounts, make a BVN enquiry, check your account balance and get a mini statement.

For non-customers, this feature allows you to open a bank account in a couple of minutes without having to visit the banking hall.

You can open a bank account, receive your account number immediately and start transactions on it right away. The claims of “instant banking, anytime, anywhere” can’t get more real than this.

There is even an added security step, requesting a second-factor authentication (2FA) for transfers above N20,000 as a way to secure customers from being ripped off their funds.

There is a cumulative maximum daily transfer limit of N100,000 to both FirstBank and other banks accounts.

How does FirstBank USSD improve the lives of Nigerians?

For one, the data being generated through this service is sufficient to help the bank understand its current and prospective customers and develop products that suit them.

Traders and small businesses can also get a Merchant ID which customers can use to make payments for products and services.

This of course is better than having to send one’s account details to countless customers, even without knowing whether or not they are ready to make their purchase.

To ensure customers can meet emergency needs before month-end, the Bank’s FirstAdvance service is at their fingertips.

FirstAdvance is a digital lending solution designed to offer convenient and easy access to cash for payroll customers awaiting payment of their salaries.

Offered through the Bank’s USSD Banking service and leading banking app product, FirstMobile, customers are exposed to a range of loan offerings which put them at an edge in meeting immediate financial needs.

To initiate the service through the USSD banking service, the customer is to dial – USSD CODE-*894*11# or *894#.

The service is open to customers with a salary account domiciled with the Bank and have received salaries for the last 6 months at the least.

There are much more about FirstBank’s *894# USSD banking that puts customers at a distinct advantage in carrying out their daily personal, financial and business activities; meeting unforeseen emergencies, and carrying out a wide range of transactions – with so much fun and convenience – irrespective of where they are in the country.

Culled from NairaMetrics

Business

AltBank Walks Against Hunger, Advocates for Education

Published

2 days ago

April 18, 2024

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The Alternative Bank Limited (AltBank) has announced a strategic collaboration with FoodBank and Sterling One Foundation to raise approximately N20 million in support of hunger alleviation and educational initiatives.

This initiative aligns with the theme of the African Union Summit 2024, “Educate and Skill Africa for the 21st Century.”
Hassan Yusuf, the Managing Director of The Alternative Bank, unveiled this plan in a press release, highlighting the forthcoming AltWalk event as a pivotal fundraising platform. “Through this initiative, we aim to mobilize contributions from both internal and external stakeholders, reaffirming our commitment to education and societal welfare,” stated Yusuf.

The fundraising campaign aims to secure N20 million, with the proceeds serving dual purposes: providing meals for underserved communities and orphanages through the Lagos FoodBank initiative and delivering quality educational support via Sterling One Foundation.

This campaign targets individuals, families, businesses, and organizations committed to ending hunger, improving education, fostering healthy living, and positively impacting society. Prospective donors are encouraged to contribute through https://altbank.ng/walk/.
Stakeholder participation and donations are poised to substantially impact critical social issues, including hunger reduction, enhanced education, and healthier lifestyles.

Yusuf emphasized AltBank’s dedication to empowering customers through innovative solutions in health, food security, and education, positioning them for success in the 21st century. He stressed that education is central to the bank’s mission of bolstering the economy and enhancing financial well-being across society.

AltBank, Nigeria’s most recent entrant into the financial services sector, made a grand entrance with simultaneous launch events in Lagos, Abuja, and Kano, marking the country’s first multi-city brand launch. As the ethical banking arm of Sterling Financial Holdings, The Alternative Bank originated in 2014 as Sterling Alternative Finance under Sterling Bank Plc’s non-interest banking license. It has since evolved into a prominent player in Nigeria’s non-interest banking sector.

About Lagos FoodBank

Lagos Food Bank is a non-profit, nutrition-focused initiative committed to fighting hunger, reducing food waste, and addressing malnutrition through targeted programs. Their initiatives aim to improve the nutrition and food intake of vulnerable populations, including children, pregnant women, lactating mothers, seniors, and impoverished families.

About Sterling One Foundation

The Sterling One Foundation catalyzes positive social impact across critical sectors of the Nigerian economy. Motivated by the distinct challenges faced by millions of Africans, the foundation aims to achieve Sustainable Development Goals (SDGs), capitalize on the demographic dividend, and improve the standard of living for underserved communities. Through stakeholder-driven interventions, it focuses on employability, sustainability, wealth creation, socioeconomic development, and national progress.

Business

Fidelity Bank Grows Profit By 131.5% In FY 2023

Published

4 days ago

April 16, 2024

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-Declares a final dividend of 60kobo per share

Leading financial institution, Fidelity Bank Plc, has released its 2023 full year Audited Financial Statements, reporting a 131.5% growth in Profit Before Tax to N 124,26 billion.

According to the results, which was issued to the Nigerian Exchange (NGX) today, the bank grew Gross Earnings by 64.9% YoY to N555.83 billion, driven by 81.6% growth in Net interest income which increased from N152.7billion to N277.37 billion. This led to a Profit After Tax of N99.45 billion representing a 112.9% annual growth.

Commenting on the Bank’s commendable performance, Dr. Nneka Onyeali-Ikpe,OON, MD/CEO of Fidelity Bank Plc said, “We closed the financial year with strong double-digit growth across key income and balance-sheet lines. Our performance in 2023 is an attestation of our capacity to deliver superior returns to shareholders despite the difficulties in our operating environment. Profit before tax grew by 131.5% to N124.3bn from N53.7bn in 2022FY, leading to an increase in Return on Average Equity (RoAE) of 26.5% from 15.6% in 2022FY.”

A review of the financial performance showed that the bank grew Net interest income by 81.6% to N277.4bn driven by a 55.5% increase in interest income, thus reflecting a steady rise in asset yield throughout the year. The average funding cost dropped by 20bps to 4.4% due to increased low-cost funds that grew from 83.6% in 2022FY to 97.4% in 2023. The combination of higher asset yield and lower funding cost led to an increase in Net Interest Margin (NIM) of 8.1% from 6.3% in 2022FY.

Similarly, Total Customer Deposits crossed the N4tn mark as deposits grew by 55.6% from N2.6tn in 2022FY. The increase was driven by 81.1% growth in low-cost funds.

Despite the challenging operating environment, the bank reaffirmed its devotion to helping individuals grow, inspiring businesses to thrive and empowering economies to prosper by increasing Net Loans & Advances to N3.1tn from N2.1tn in 2022FY.

Despite the growth in its loan portfolio, Regulatory Ratios were maintained well above the required thresholds, with liquidity ratio at 45.3% from 39.6% in 2022FY and capital adequacy ratio (CAR) at 16.2% compared to the minimum requirement of 15.0%.

“We recognize the changing dynamics in the Nigerian banking space and the need to monitor and proactively manage evolving risks. The proposed final dividend of 60 kobo per share reflects our commitment to strong value creation and returns to our shareholders,” explained Onyeali-Ikpe.

Fidelity Bank has consistently paid dividend since 2006. With the proposed final dividend of 60 kobo per share, Fidelity Bank would be paying investors a total dividend of 85 kobo per share for the reporting period, a 70.0% increase compared to the 50 kobo per share paid to its shareholders in the previous year.

Ranked as one of the best banks in Nigeria, Fidelity Bank is a full-fledged customer commercial bank with over 8.3 million customers serviced across its 251 business offices in Nigeria and the United Kingdom as well as on digital banking channels.

The bank has won multiple local and international awards including the Export Finance Bank of the Year at the 2023 BusinessDay Banks and Other Financial Institutions (BAFI) Awards, the Best Payment Solution Provider Nigeria 2023 and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards; Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence 2023; and Best Domestic Private Bank in Nigeria by the Euromoney Global Private Banking Awards 2023.

Business

Black Market Dollar (USD) To Naira (NGN) Exchange Rate Today 16th April 2024

Published

4 days ago

April 16, 2024

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What is the Dollar to Naira Exchange rate at the black market also known as the parallel market (Aboki fx)?

See the black market Dollar to Naira exchange rate for 15th April, below. You can swap your dollar for Naira at these rates.

How much is a dollar to naira today in the black market?

Dollar to naira exchange rate today black market (Aboki dollar rate):

The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N1100 and sell at N1115 on Monday 15th April 2024, according to sources at Bureau De Change (BDC).

Please note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market), as it has directed individuals who want to engage in Forex to approach their respective banks.