Stanbic IBTC Holdings Plc has announced a move to establish a wholly-owned financial technology (Fintech) Subsidiary, according to a regulatory filing on Tuesday.
The holdings financial service company told the Nigerian Exchange (NGX) and the investing public that it has commenced the process of seeking regulatory approvals.
Competition in the banking sector and the threat of fintech operators are forcing many banks to seek alternative earnings sources. Regulators recently approves payment solutions service provider licenses to MTN Nigeria and Airtel Africa.
The coming of these telecom giants into payment service has been projected to negatively impacts banks earnings. According to the statement released today, the proposed wholly-owned financial technology subsidiary will be known as Stanbic IBTC Financial Services Limited, the Holdings stated.
The group said this is however subject to receiving all required regulatory approvals, including licensing by the Central Bank of Nigeria (CBN).
Stanbic IBTC Holding added that the new subsidiary will function primarily as a Payment Solution Service Provider (PSSP), saying the group will update the market upon completion of the regulatory approval process as well as licensing of the new subsidiary.