MfBs disbursed N1.7 billion in loans as deposit base reached N700 billion – NAMBLAG Chairman
The Chairman of the National Association of Microfinance Banks, Lagos State Chapter (NAMBLAG), Adenrele Oni, disclosed how Microfinance Banks of Nigeria (MfB) disbursed around N1.7 trillion in loans in June 2022, while the deposit base would be over N700 billion. .
Oni, said at the 11th Annual General Meeting (AGM) and inauguration of the new NAMBLAG Management Executive Committee.
According to Oni, the MfBs have complied with the new capitalization requirement of the Central Bank of Nigeria (CBN) and have hinted that a number of MfBs are awaiting the regulatory approval that will come from the new capital injection.
“Our members are operational to meet the capitalization requirement. A number of our members have met and exceeded capital requirements which is a plus for the industry,” Oni said.
He further explained that there have been a number of developments in the sector, with the emergence of a number of digital banks that have invested in digitizing the microfinance ecosystem.
“In order to defend our collective interest and achieve our objectives, we will continue to collaborate and engage in constructive discussions with all service providers in our industry, stakeholders, major correspondent banks, credit bureaus, suppliers information technology and banking applications, microfinance banks regulators,” Oni said.
Earlier in his remarks, the outgoing president of the association and MD Accion MfB, Taiwo Joda, said that MfBs have done very well in the area of digitalization, especially those operating in Lagos.
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Speaking on the theme “Digital Growth through Innovation and Collaboration”, Joda revealed that the association emphasizes the need for increased collaboration among members, especially with fintechs and others. digital technology providers on different platforms.
“Technology is not cheap; this may be one of the reasons why we have not seen a significant number of microfinance banks have their banking processes fully digitized. Like a few other banks that can pull the financial muscle,” he said.
Speaking in more detail on digital adoption by MfBs, Joda said the ratio of capital investment in digital technology varies from bank to bank. According to him, stakeholders are the driving force behind the adoption of digital technology.
The ratio of capital investment in digital technology varies from bank to bank, that’s why I said you can have 20 million naira and be able to digitize your project. It also depends on your height. We have a unit, a state bank and a national microfinance bank,” Joda said.
On how MfBs can successfully integrate technology into their day-to-day operations, Joda said MfBs don’t necessarily have to develop it on their own; but can collaborate with fintechs and other technology providers.
“You can also collaborate with different digital platforms, especially payment platforms, and this helps you because you don’t need to invest large sums in IT infrastructure; what you need to do is buy and pay as you go. Thus, you do not need to limit your capital expenditure. You can buy it and rent or rent the technology and pay overtime,” he concludes.