Digital Banking and Nigeria’s Economic Growth
Nigeria recorded 3.7 billion real-time transactions in 2021 – ranking as the 6th most developed real-time payment market in the world – behind India, China, Thailand, Brazil and Korea from South.
This is why the country’s digital payments revolution is now driving economic growth and financial inclusion to unprecedented levels for Africa’s largest economy, according to the 3rd edition of Prime Time for Real-Time, released recently by ACI. Worldwide, in partnership with GlobalData, a leading data and analytics company, and the Center for Economics and Business Research (CEBR).
The report – which tracks real-time payments volumes and growth in 53 countries – includes an economic impact study for the first time, providing a comprehensive view of the economic benefits of real-time payments for consumers, businesses and the wider economy in 30 countries. .
The widespread adoption of new digital and real-time payment services in Nigeria has unlocked $3.2 billion in additional economic output in 2021, representing 0.67% of the country’s GDP.
This means that Nigeria ranks 4th among global economies realizing the maximum economic benefits from real-time payments.
“Nigeria is rapidly becoming a leading figure across Africa for the successful digital transformation of the country’s economy,” said Santhosh Rao, Head of Middle East, Africa and South Asia, ACI Worldwide.
Rao added, “Accelerated by the COVID-19 pandemic, Nigerians are increasingly expecting higher speeds, greater simplicity and modern thinking from financial service providers. While cash is still widely used, the shift towards greater adoption of digital and real-time payment services is a testament to the success of government regulators in fostering rapid growth in digital openness, especially payments.
But digital banks should not be confused with online banking or mobile banking platforms. Neobanks or digital banks have no affiliation with traditional banks. They don’t have a bank machine or a physical branch that you can walk into. But like their physical counterparts, they offer services similar to what one would get from a physical bank.
The difference between a digital bank and a physical bank lies in the banking process. For digital banks, the entire banking process is online.
In the case of mobile banking or internet banking, it is not the same as digital banking, as they are complementary services offered by traditional banks. They allow users to carry out certain transactions remotely. These transactions include payment of electricity or cable bills, money transfers and data subscription
Experts have said digital banks are now taking Nigeria by storm. Since the advent of the first digital bank in 2017, the concept of neobanks or internet-only banks has caught on.
ALAT simplifies payments and collections with the new Quick Response (NQR) functionality. It is one of Nigeria’s digital banking platforms, which has again raised the bar in service delivery by including an NQR-based payment and collections solution to boost convenient financial transactions. and safe.
ALAT’s new feature, known as NQR or Quick Response (QR), is a code-based payment and collections solution that offers fast, easy, secure, reliable, contactless and phone-based options. account to receive and pay for goods and services.
Announcing the new feature in a press release, the digital bank explained that merchants/business owners/individuals can view generated QR codes on ALAT to receive on-the-spot payments for goods and services.
“Payers/customers select the NQR option on their bank’s mobile app and scan the displayed NQR codes to make payment to the merchant. merchants/business owners and payers receive instant notification of payment made,” the bank explained.
The benefits of NQR over ALAT include simplicity of use, easy setup, zero acquisition cost, and a seamless merchant onboarding process. Other benefits are super-fast deployment, instant payment and settlement, and fast and secure checkout.
In terms of transactions that can be made using the new feature, the bank said transaction limits are determined by the payer’s bank. However, the bank revealed that transactions below N250 would attract 50 kobo, while those between N25 and N999.99 would be charged N1.
Transactions between N1000 and N4,999.99 will attract N5, just as those between N5000 and above would pay the applicable fee of N25. The bank revealed that the fees payable for the service are currently the lowest in the industry.
FG establishes digital infrastructure across Nigeria – Galaxy Backbone
Nigeria is building efficient and productive digital infrastructure that will fuel and propel its digital economy to grow gross domestic product (GDP), the Galaxy Backbone (GB) said.
GB’s chief executive, Prof. Muhammed Bello Abubakar, said so during the ICTEL exhibition, according to a statement from the IT agency.
“The digital world has accelerated in 2020 during the pandemic, so today we have a lot of transactions that are in the billions of dollars, starting and ending on different digital platforms and in this way a lot of data is generated . This data should be stored safely somewhere and also backed up to ensure and prevent unforeseen circumstances. Organizations must continue to devise innovative ways to store and back up their data to ensure business continuity,” according to the statement signed by agency spokesperson Chidi Okpala, citing Abubakar.
He said Galaxy Backbone, the digital infrastructure and shared services platform for public and private organizations, is playing an active role in Nigeria’s digital transformation journey.
He said, “We are proud of the investment and work we have done and continue to do to ensure that the backbone and network infrastructure that powers Nigeria’s digital economy is secure, available and efficient.
“Our world-class Tier III data center and soon to be Tier IV data center for cloud and disaster recovery purposes is available to everyone and later today we’ll be diving deep into its huge potential for Nigerian small and medium enterprises, businesses and government.”