In its continuous efforts to deepen financial inclusion in Nigeria and encourage a more efficient regulatory framework for Microfinance Banks, (MFBs), Financial Technology (Fintech) solutions provider, Inlaks has teamed up with the Central Bank of Nigeria (CBN) to deploy a single core and agent banking solution for almost 1000 Microfinance Banks (MFBs) in Nigeria.
This landmark project will be implemented under the auspices of the National Association of Microfinance Banks Unified IT Platform (NAMBUIT), starting July 2017.
Mr. Femi Adeoti, Inlaks Managing Director, stated that the company is well positioned to handle the project based on its wealth of experience in handling similar projects across West Africa, adding that the pilot phase will include selected unit, state and national MFBs ahead of the nationwide deployment later in the year.
Adeoti highlighted the core benefits of this project, designed, amongst others to deepen financial inclusion in the country and bring better regulatory framework for the MFBs. He also stated that the project will enable on-boarding of 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 in the microfinance sector.
It is of note that currently, Information Technology (IT) Solutions costs is a significant portion of the operating expenses of the MFBs, creating serious financial impacts on Operational Self Sufficiency (OSS). The project is therefore expected to reduce operational cost, 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.
NAMBUIT is an institutional collaboration between CBN, Inlaks and The National Association of Microfinance Banks (NAMB).
According to Mr. Adesemoye of the CBN’s Other Financial Institution Supervision Department (OFISD), NAMBUIT, on completion of the project will 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.