Inlaks, Financial Technology (Fintech) solutions provider in Nigeria and Sub-Saharan Africa, has commended the Central Bank of Nigeria (CBN), for licensing additional 28 Micro Finance Banks (MFBs), in the country. This brings the number of MFBs to 1,008, representing an increase of three per cent in that sector from 2016 to date.
Speaking on the development, Executive Director at Inlaks, Olufemi Muraino, said the move is essential in order to effectively ensure the development of the Nigerian economy.
He said: “The licensing of additional 28 MFBs in 15 states by the CBN is a welcome development, which will not only attract investors and new businesses, but will also boost the nation’s economy, and further deepen financial inclusion in the country.”
Muraino further explained that this is an opportunity to integrate the newly licensed MFBs into the National Association of Microfinance Banks Unified IT Platform (NAMBUIT), to ensure a better regulatory framework.
NAMBUIT is an institutional collaboration between Inlaks, CBN, and the National Association of Microfinance Banks (NAMB).
Already, Inlaks is partnering with the CBN to deploy a single core and agent banking solution for almost 1,000 microfinance banks in Nigeria under the auspices of NAMBUIT.
The banking solution is expected to link the MFBs to the platform of the Nigeria Inter Bank Settlement System (NIBSS), to enable them to engage the cash deposit banks in seamless transactions.
A core benefit of the NAMBUIT project, according to Muraino, is on-boarding of MFBs into the national payment system, which will significantly lower the operating costs of the MFBs via the provision of robust core and agent banking solutions for branchless banking in the microfinance sector.