Wema Bank: How POS Channel Boosts Financial Inclusion

The creation of the agent banking system by the Central Bank of Nigeria (CBN) and the subsequent roll-out and deployment of the point of sale (POS) terminals by banks and other operators of mobile money have been described as a policy masterstroke in boosting and expanding financial inclusion drive in the country. 

This is the view of two senior officers of Wema Bank Plc, Damola Bolodeoku, Head, E-Business, and Adekunle Alarapon, Head Retail Segments, respectively. 

Both men spoke on an NTA Network programme, “Weekend Deal” which x-rayed the benefits and challenges of PoS since its inception.

Specifically, Bolodeoku said the PoS business has witnessed 86% growth in the last two years and has helped to bring a large segment of Nigeria’s informal and unbanked population into the formal financial system. 

According to him, financial service delivery has become easier, especially in the rural areas where physical banks are not present, through the massive deployment of POS terminals. 

On dispute resolution protocols arising from dispense error and fraud, Bolodeoku advised POS customers to lodge complaints with their banks immediately for proper investigation to be conducted and the disputes resolved.

On the monitoring and supervisory framework developed by banks to monitor the operations of POS, Bolodeoku explained that direct bank agents appointed by the banks are monitored through due diligence and Know-Your-Customer exercise.

In his contributions, Alarapon disclosed the CBN is pushing financial inclusion through agent banking to integrate about #2.6 trillion in the informal and unbanked sector. 

According to him, CBN’s target has been to achieve about 25% financial inclusion of the adult Nigerian population within a short time. 

TrustBanc Pays N4.2bn Commercial Paper Proceeds on Maturity

TrustBanc Holdings Limited (TrustBanc), the parent company of three regulated financial services companies, has successfully redeemed its series 3 Commercial Paper (CP) issue for a total amount of N4.2 billion on the 2nd of March 2022.

The 180-day CP was issued at a discount of 12.6573 per cent, subscriptions to the issue were made by institutional investors, with a significant proportion by asset and fund managers.

The bank in a statement said, “We confirm that the maturity proceeds of Commercial Paper (CP) bearing NGTRUCP22S34 on FMDQ has been duly paid to all the holders of the Series on the maturity date, March 2,2022.”

Earlier in the year, TrustBanc announced the successful maturity and redemption of its debut Series 1 and 2Commercial Papers, bringing the total redemption under its N10billion Issuance Programme to N6.1 billion.

“Once again, we are pleased to repay your trust and redeem our series 3 issue at its maturity. I would like to thank all the holders of this commercial paper issue. Their trust represents a strong mark of confidence in TrustBanc, its financial performance, its business model and growth strategy. In addition, our Group is proud to contribute to the growth of the Commercial Paper market through the FMDQ, “said Chief Executive Officer of TrustBanc Holdings Limited, Mr. Abu Jimoh, CFA.

UCML Capital Limited, United Capital Plc and Emerging Africa Group, acted as dealers on the series. Speaking on behalf of the dealers, Director at UCML Capital Limited, Mr. Egie Akpata, said the company’s ability to pay at maturity further confirms to subscribers and the market at large that TrustBanc Holdings Limited is a trustworthy counter-party.

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