Stanbic IBTC Holdings has announced plans to launch a wholly-owned financial technology subsidiary to be christened Stanbic IBTC Financial Services Limited. Therefore, it is seeking approval and license from the Central Bank of Nigeria to go ahead.
The bank said in a statement by its Company Secretary, Chidi Okezie that the new subsidiary would function primarily as a payment solution service provider.
In the disclosure posted by the Nigerian Exchange (NGX) Limited, it stated that the process for securing the necessary regulatory approvals has started.
It seems traditional banks in Nigeria are finally coming to terms with the fact that there is serious competition from digital banks like Kuda, Flutterwave and Paystack among others.
These neobanks which are disruptive and innovative have taken introduced different products and services which have attracted the relatively young Nigerian population as well as extended financial services to the underbanked and the underserved.
A good example of the impact of the digital bank is the recent move by Standard Chartered Bank Nigeria to close 50% of its branches to focus on digital banking. Perhaps in the near future, traditional banks will be rendered to just withdrawal of physical which is even under threat from POS operators.
