CBN to implement new collateral mgt regime

The Central Bank of Nigeria (CBN) is set to develop a new collateral management regime.

The move is in line with ongoing efforts to evolve a robust collateral management regime which would be proportionate to transactional level of participants within the payment system.

Disclosing this Wednesday in Lagos, at the Lagos Fintech Week 2019 with the theme: ‘Fintech: Exploring the Huge Opportunities,’  Sam Okojere,    the director, payments system management department, CBN,  said in line with the new collateral management regime, both incumbents and new entrants would operate without unnecessary collateral burden.

He also stated that a fintech enterprise support scheme was being developed to extend low cost finance to firms participating in the payments ecosystem.

“Also, of concern, is the dilemma in balancing security and convenience in product design. Operators often lean towards simplicity in product design at the expense of security,” he added.

In his remarks, the Chief Executive Officer, Xpress Payment Solutions, Oluwadare Owolabi, noted that as a brand the focus of the company was to provide end-to-end experience, and smarter way of doing things for clients.

“All that we have put together is to ensure we give you a product that will enable you to improve on your processes, because the experience the customers have with us determines the trust. We seat with our clients to procreate. Procreating means we come to you and understand your processes, it is about layering your business on payment,” he added.

Owolabi, who was represented the group head, switching and terminal service, Oluwatoyin Albert, noted that fintechs have been able to innovate, collaborate and ensure that there are products that meets the needs of the consumers, because of changing behavioural patterns.

He added that 10 years ago, the e-Payment space provided what the customers wanted, but today now the customer determines what they want, “we have a platform which is the value added services platform and there we talk about lifestyle.

“It is a lifestyle platform to us. So we want you as an individual or family to have contact with that platform in carrying out certain services such as payment of electricity bills, purchase of airtime, DSTV subscription and other things.”