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    Innovation Village | Technology, Product Reviews, Business
    You are at:Home»Digital»Digital lending»Access Bank gets CBN’s preliminary approval, Signaling entry into the Consumer Lending space
    Access Bank

    Access Bank gets CBN’s preliminary approval, Signaling entry into the Consumer Lending space

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    By Smart Megwai on January 17, 2024 Digital lending, Fintech

    Access Holdings Plc, the parent company of Access Bank, has received an approval-in-principle from the Central Bank of Nigeria (CBN) for the establishment of its consumer lending subsidiary, Oxygen X Finance Company Limited. This strategic move into the consumer lending space marks a significant development for Access Holdings, as revealed in a company notice (pdf) on the Nigerian Exchange Ltd (NGX) website.

    The disclosure, signed by Sunday Ekwochi, Access Holdings’ Company Secretary, emphasised that Oxygen X is poised to make a positive impact on the financial landscape. The subsidiary aims to provide innovative and seamless digital lending solutions to address distinct challenges faced by individuals and businesses in our rapidly evolving world.

    Access Holdings plans to launch Oxygen X Finance Company Limited as soon as it secures the final permission from the CBN. The company will update the market on subsequent developments regarding the licensing process in due course.

    The consumer lending industry in Nigeria is witnessing notable growth, influenced by the increasing cost of living in the country. According to a CBN report (pdf), consumer credit in Nigeria surged by N740 billion between January and September 2023. By September 2023, consumer credit reached N3.05 trillion, reflecting a 17% increase from Q2 2023. Personal loans constituted 74.8% of consumer credits, while retail loans accounted for the remaining 25.2%.

    Access Holdings’ entry into the consumer lending ecosystem raises questions about the operational framework of Oxygen X, which remains undisclosed. However, existing digital lending startups in Nigeria serve as examples, offering potential insights for new entrants.

    Additionally, the move places Access Holdings under the regulatory oversight of the Federal Competition & Consumer Protection Commission (FCCPC). While the FCCPC has been vigilant in monitoring the consumer lending industry, it has acknowledged constitutional limitations in intervening in banking sector matters. The entry of a banking giant like Access Holdings adds a new dimension to the regulatory landscape.

    As Access Holdings progresses through the licensing process, the financial market awaits further details about the operational strategies and potential impacts of Oxygen X Finance Company Limited on the consumer lending sector in Nigeria.

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    Access Bank Plc Lending
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    Smart Megwai
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    Smart is a Tech Writer. His passion for educating people is what drives him to provide practical tech solutions which helps solve everyday tech-related issues.

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    1. Pingback: Access Bank set to acquire 80% interest in Uganda's Finance Trust Bank - Innovation Village | Technology, Product Reviews, Business

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