By Emma Okonji
In order to further deepen financial inclusion in the country and promote better regulatory framework for the Microfinance Banks, (MFBs), Financial Technology (Fintech) solutions provider, Inlaks, is collaborating with the Central Bank of Nigeria (CBN) to deploy a single core and agent banking solution for almost 1000 MFBs in Nigeria.
The project would be implemented as the National Association of Microfinance Banks Unified IT Platform (NAMBUIT) starting from July 2017.
Inlaks Managing Director, Mr. Femi Adeoti, said: “The company is well positioned to handle the project based on its wealth of experience in handling similar projects across West Africa.”
The pilot will include selected unit, state and national microfinance banks (MFBs).
In addition, the project will also facilitate on-boarding of the MFBs into the national payment system and significantly lower the operating costs of the MFBs by providing robust Core and Agent banking solutions for branchless banking.
Currently, Information Technology (IT) cost is a significant portion of the operating expenses of the MFBs and this significantly impacts their operational self-sufficiency (OSS). The project is therefore expected to deepen collaboration within the microfinance community and spur significant growth in the sector by improving access to accurate and timely operational and financial reports for prompt decision making, Adeoti said.
According to CBN, other Financial Institution Supervision Department (OFISD), and NAMBUIT, on completion of the project would deliver numerous gains to the industry especially at this significant level of the economy through financial access, inclusion and sustainability of the microfinance institutions on value chain financing and growth of the small and medium scale enterprises.