Stanbic IBTC Holdings Launches Fintech Subsidiary

Stanbic IBTC Holdings announced plans to create a financial technology subsidiary that is wholly owned by Stanbic IBTC Financial Services Limited. It is therefore seeking approval from the Central Bank of Nigeria for it to proceed.

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In a statement made by Chidi Okezie, the bank stated that the new subsidiary will primarily function as a payment solution provider.

The Nigerian Exchange Limited disclosed that they have begun the process of obtaining the regulatory approvals.

Traditional banks in Nigeria seem to be finally coming to terms the reality of digital banks such as Flutterwave, Kuda and Paystack.

These neobanks, which are innovative and disruptive, have introduced new products and services that have attracted the young Nigerian population. They also extended financial services to the poor and underbanked.

Standard Chartered Bank Nigeria recently closed half of its branches in order to concentrate on digital banking. This is a good example of how the digital bank has had an impact. In the future, it is possible that traditional banks will no longer be able to withdraw physical funds. This threat is also being made by POS operators.

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